Myles Company budgeted 10,500 pounds of direct materials costing $23.50 per pound to make 5,300 units of product. The company actually purchased 11,000 pounds of direct materials costing $25.00 per pound to make the 5,300 units
What is the direct materials price variance?
A) $16,500 favorable
B) $16,500 unfavorable
C) $15,750 unfavorable
D) $15,750 favorable
B
Explanation: B)
Material Price Variance. = (Actual Price (AP) per unit - Standard Price (SP) per unit) × Actual Quantity purchased (AQP)
$16,500 U = ($25 - 23.50 ) × 11,000
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The Commission does NOT investigate ethics violations.
a. true b. false