Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Financial Accounting
Transcribed Image Text:Atlantic Manufacturing reports the following data for direct
materials:
The actual cost of direct materials is $48.25 per pound, and the
standard cost per pound is $50.75. During the current period,
7,200 pounds were used in production, while the standard
quantity for actual units produced is 6,800 pounds.
How much is the direct materials price variance?
a. $18,000 unfavorable
b. $18,000 favorable.
c. $18,600 favorable
d. $18,600 unfavorable
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