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Compute the Variance analysis of direct Materials.
Information on Rex Co.'s direct material costs for May follows:
Actual quantity of direct materials
30,000
pounds
Actual cost of direct materials.......................................
$84,000as
Unfavorable direct materials quantity variance............
$3,000
Standard quantity of direct materials ...........................
29,000
For the month of May, what was Rex's direct materials price variance?
A) $2,800 favorable
B) $2,800 unfavorable
C) $6,000 Unfavorable
D) $6,000 favorable
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