Regal Dog Food Company's standard quantity of direct materials is fifty pounds for each bag Of premium dog food that it manufactures; the standard price is $.50 per pound. During the most Recent month, Regal manufactured 1,000 bags of premium dog food; 54,000 pounds of direct Materials were actually used at a cost of $29,160.
-How much was the direct materials price
Variance?

Question

Regal Dog Food Company's standard quantity of direct materials is fifty pounds for each bag Of premium dog food that it manufactures; the standard price is $.50 per pound. During the most Recent month, Regal manufactured 1,000 bags of premium dog food; 54,000 pounds of direct Materials were actually used at a cost of $29,160. 
-How much was the direct materials price
Variance?

Quizplus · Accepted Answer

The direct materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. The actual price per pound is $29,160 / 54,000 pounds = $0.54. The standard price is $0.50. Therefore, the variance is ($0.54 - $0.50) x 54,000 = $0.04 x 54,000 = $2,160 unfavorable, because the actual price is higher than the standard price.

Regal Dog Food Company's Standard Quantity of Direct Materials Is