Myles Company budgeted 10,500 pounds of direct materials costing $23.50 per pound to make 5,300 units of product.The company actually purchased 11,000 pounds of direct materials costing $25.00 per pound to make the 5,300 units.What is the direct materials price variance?

Question

Quizplus · Accepted Answer

B)
Material Price Variance.= (Actual Price (AP)per unit - Standard Price (SP)per unit)× Actual Quantity purchased (AQP)
$16,500 U = ($25 - 23.50)× 11,000

Myles Company Budgeted 10,500 Pounds of Direct Materials Costing $23