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Question - A company provided the following direct materials cost information. Compute the direct materials price variance.
Standard costs assigned:
Direct materials standard cost (416,000 units @ 2.10/unit) $873,600
Actual costs:
Direct materials costs incurred (415,850 units @ $2.20/unit) $914,870
A. $873,600 Favorable.
B. $873,600 Unfavorable.
C. $41,585 Unfavorable.
D. $41,585 Favorable.
E. $41,600 Favorable.
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