Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials price variance?

Question

Quizplus · Accepted Answer

Direct materials price variance = (actual price - standard price) x actual quantity

Standard price = $5.00 per pound
Actual price = $5.10 per pound
Actual quantity = 4,500 pounds

Direct materials price variance = ($5.10 - $5.00) x 4,500 = $450 unfavorable.

Therefore, the best choice is B as it represents the correct direct materials price variance.

Bradford Company Budgeted 4,000 Pounds of Material Costing $5