The Russell Company provides the following standard cost data per unit of product: $\begin{array}{ll}
\text {Direct material ( 3 gallons @\$ 6 per gallon) } & \text { \$ 18.00 } \
\text {Direct labor ( 2 hours @ \$ 10 per hour) } & \text { \$ 20.00 }
\end{array}$ During the period,the company produced and sold 22,000 units incurring the following costs: $\begin{array}{ll}
\text {Direct material } & \text { 68,000 gallons@ \$ 5.90 per gallon } \
\text {Direct labor } & \text {45,500 hours @ \$ 9.75 per hour }
\end{array}$ The direct material price variance was:
A) $6,600 unfavorable.
B) $6,600 favorable.
C) $6,800 unfavorable.
D) $6,800 favorable.

Question

The Russell Company provides the following standard cost data per unit of product: $\begin{array}{ll}
  \text {Direct material ( 3 gallons @\$ 6  per gallon)  } &  \text {  \$ 18.00   }  \
 \text {Direct labor ( 2 hours @ \$ 10  per hour) } & \text { \$ 20.00 } 
\end{array}$ During the period,the company produced and sold 22,000 units incurring the following costs: $\begin{array}{ll}
  \text {Direct material } &  \text { 68,000 gallons@ \$ 5.90 per gallon  }  \
 \text {Direct labor } & \text {45,500  hours @ \$ 9.75  per hour } 
\end{array}$ The direct material price variance was:
A) $6,600 unfavorable.
B) $6,600 favorable.
C) $6,800 unfavorable.
D) $6,800 favorable.

Quizplus · Accepted Answer

The Answer of The Russell Company provides the following standard cost data per unit of product: $\begin{array}{ll}
  \text {Direct material ( 3 gallons @\$ 6  per gallon)  } &  \text {  \$ 18.00   }  \
 \text {Direct labor ( 2 hours @ \$ 10  per hour) } & \text { \$ 20.00 } 
\end{array}$ During the period,the company produced and sold 22,000 units incurring the following costs: $\begin{array}{ll}
  \text {Direct material } &  \text { 68,000 gallons@ \$ 5.90 per gallon  }  \
 \text {Direct labor } & \text {45,500  hours @ \$ 9.75  per hour } 
\end{array}$ The direct material price variance was:
A) $6,600 unfavorable.
B) $6,600 favorable.
C) $6,800 unfavorable.
D) $6,800 favorable.

The Russell Company Provides the Following Standard Cost Data Per