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Question - Ariel Company recently set up its standard costs for Direct Materials. The entity sets the benchmark at 3 units of Direct materials per products at a standard price of P10 per unit of direct materials.
During the year, the entity acquired 400 units of direct materials at a total cost of P4,800 or P12 per unit. The entity also manufactured 100 products using P250 units of direct materials.
Required - What is the Direct material Price Variance
a. P500 Unfavorable
b. P800 Unfavorable
c. P600 Favorable
d. P700 Favorable
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