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Information on Fleming Company's Direct Material Costs Follows What Was the Company's Direct Material Price Variance?
A) $1,000

Question 26

Multiple Choice

Information on Fleming Company's direct material costs follows:
 Actual amount of direct materials purchased and used 20,000 kilograms  Actual direct material costs $40,000 Standard price of direct materials $2.10 per kilogram  Direct materials quantity variance-favourable $3,000\begin{array}{|l|r|}\hline \text { Actual amount of direct materials purchased and used } & 20,000 \text { kilograms } \\\hline \text { Actual direct material costs } & \$ 40,000 \\\hline \text { Standard price of direct materials } & \$ 2.10 \text { per kilogram } \\\hline \text { Direct materials quantity variance-favourable } & \$ 3,000 \\\hline\end{array}
What was the company's direct material price variance?


A) $1,000 favourable.
B) $1,000 unfavourable.
C) $2,000 favourable.
D) $2,000 unfavourable.

Correct Answer:

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