Use the following information to answer the following Questions

-The direct-material price variance is:
A) $4,620F.
B) $4,620U.
C) $5,200F.
D) $5,200U.
E) None of the answers is correct.

Question

Use the following information to answer the following Questions

-The direct-material price variance is:
A) $4,620F. 
B) $4,620U. 
C) $5,200F. 
D) $5,200U. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The direct-material price variance is calculated as the difference between the actual cost and the standard cost of materials, multiplied by the actual quantity purchased. If the variance is unfavorable (U), it means the actual cost was higher than the standard cost.

Use the Following Information to Answer the Following Questions