Question

The following company information is available:


Direct materials used for production 36,000 gallons
Standard quantity for units produced 34,400 gallons
Standard cost per gallon of direct material $6.00
Actual cost per gallon of direct material $6.10

The direct materials price variance is:
A. $10,000 unfavorable B. $13,200 unfavorable
C. $9,600 unfavorable
D. $3,600 unfavorable
E. $13,200 favorable

Answer

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