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Cost standards for product A:
Direct material 3 pounds at $2.50 per pound $ 7.50
Direct labor 5 hours at $7.50 per hour 37.50
Actual results: Units produced 7,800 units
Direct material purchased 25,000 pounds at $2.60 $ 65,000
Direct material used 23,100 pounds at $2.60 60,060
Direct labor 40,100 hours at $7.30 292,730 1.
Question 1: The direct material price variance is:
Option A. $2,000F.
Option B. $2,300F.
Option C. $2,000U.
Option D. $2,500U.
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