If the actual price of direct materials purchased is $200 per unit while the standard price for direct materials is $180 per unit and the total direct material used is 1,000 units while the standard direct materials allowed for actual production is 1,200 units,
A)The direct materials quantity variance will be favorable
B)The direct materials quantity variance will be unfavorable
C)The direct materials price variance will be favorable
D)The direct materials price variance will be unfavorable

Question

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The Answer of If the actual price of direct materials purchased is $200 per unit while the standard price for direct materials is $180 per unit and the total direct material used is 1,000 units while the standard direct materials allowed for actual production is 1,200 units,
A)The direct materials quantity variance will be favorable
B)The direct materials quantity variance will be unfavorable
C)The direct materials price variance will be favorable
D)The direct materials price variance will be unfavorable

If the Actual Price of Direct Materials Purchased Is $200