Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $4.50; And standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials price variance?
A)$3,000 favorable
B)$3,000 unfavorable
C)$2,880 favorable
D)$2,880 unfavorable

Question

Quizplus · Accepted Answer

The direct materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. Here, it is ($4.50 - $5.10) x 5,000 = -$3,000, which is favorable because the actual price is less than the standard price.

Myers Corporation Has the Following Data Related to Direct Materials