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Question - Koko Company Ltd has set the following direct material standards per unit of product: 2.5 kg @ $3.00 per kg. During April, actual direct material purchased is 8000 kg at a cost of $3.10 per kg. Direct materials used amounted to 7600 kg.
Actual production was 3000 units.
Determine Koko's direct material price variance.
a. $800 U
b. $300 F
c. $800 F
d. $300 U
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