Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for July:
The raw materials price variance for the month is closest to:
A) $46,200 Unfavorable
B) $50,400 Favorable
C) $46,200 Favorable
D) $50,400 Unfavorable

Question

Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  The company has reported the following actual results for the product for July:
 The raw materials price variance for the month is closest to:
A) $46,200 Unfavorable 
B) $50,400 Favorable 
C) $46,200 Favorable 
D) $50,400 Unfavorable

Quizplus · Accepted Answer

The Answer of Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  The company has reported the following actual results for the product for July:
 The raw materials price variance for the month is closest to:
A) $46,200 Unfavorable 
B) $50,400 Favorable 
C) $46,200 Favorable 
D) $50,400 Unfavorable

Dirickson Incorporated Has Provided the Following Data Concerning One of the Products