Casivant Corporation makes a product that uses a material with the following direct material standards: The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for November is:
A) $5,548 Unfavorable
B) $6,160 Unfavorable
C) $6,160 Favorable
D) $5,548 Favorable

Question

Casivant Corporation makes a product that uses a material with the following direct material standards:  The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for November is:
A) $5,548 Unfavorable 
B) $6,160 Unfavorable 
C) $6,160 Favorable 
D) $5,548 Favorable

Quizplus · Accepted Answer

The Answer of Casivant Corporation makes a product that uses a material with the following direct material standards:  The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for November is:
A) $5,548 Unfavorable 
B) $6,160 Unfavorable 
C) $6,160 Favorable 
D) $5,548 Favorable

Casivant Corporation Makes a Product That Uses a Material with the Following