Use the following information for the next 3 questions.
Vashon Corporation had the following activity during a recent period:
-The direct materials price variance was
A) $2,200 unfavorable
B) $2,600 unfavorable
C) $2,000 favorable
D) $2,200 favorable

Question

Use the following information for the next 3 questions.
Vashon Corporation had the following activity during a recent period: 
-The direct materials price variance was
A) $2,200 unfavorable 
B) $2,600 unfavorable 
C) $2,000 favorable 
D) $2,200 favorable

Quizplus · Accepted Answer

The direct materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. The problem states a $2,200 unfavorable variance, indicating the actual cost was higher than the standard cost.

Use the Following Information for the Next 3 Questions