Sherwin Chemicals produces commercial strength cleansing supplies.Two of its main products are window cleanser that uses ammonia,and floor cleanser that uses bleach.Information for the most recent period follows:

What is the direct materials price variance for ammonia?

Question

Sherwin Chemicals produces commercial strength cleansing supplies.Two of its main products are window cleanser that uses ammonia,and floor cleanser that uses bleach.Information for the most recent period follows:

What is the direct materials price variance for ammonia?

Quizplus · Accepted Answer

D)
DM Price Variance = (Standard price (SP)- actual price (AP))× Actual Quantity Purchased (AQP)
$375 U = ($.75 - $1)× 1,500

Sherwin Chemicals Produces Commercial Strength Cleansing Supplies