Q10   Empty Company maintains no inventories and has the following data pertaining to one of its direct materials in July:   Standard quantity of direct materials for the units manufactured (SQ) 31,600 Direct materials purchases—actual cost $ 98,000 Standard price per unit of direct materials (SP) $ 3.00 Direct material efficiency variance—favorable $ 6,100   All materials purchased during the month were issued to production. What was the direct materials price variance for July?   Multiple Choice   $9,300 unfavorable.   $2,900 favorable.   $3,200 unfavorable.   $9,300 favorable.   $3,200 favorable.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Q10

 

Empty Company maintains no inventories and has the following data pertaining to one of its direct materials in July:

 

Standard quantity of direct materials for the units manufactured (SQ) 31,600
Direct materials purchases—actual cost $ 98,000
Standard price per unit of direct materials (SP) $ 3.00
Direct material efficiency variance—favorable $ 6,100

 

All materials purchased during the month were issued to production.

What was the direct materials price variance for July?

 

Multiple Choice
  •  
    $9,300 unfavorable.
  •  
    $2,900 favorable.
  •  
    $3,200 unfavorable.
  •  
    $9,300 favorable.
  •  
    $3,200 favorable.
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