Gutierrez Company budgeted 10,000 pounds of direct materials costing $21.50 per pound to make 5,000 units of product.The company actually used 10,200 pounds of direct materials costing $24.00 per pound to make the 5,000 units.What is the direct materials price variance?
A) $25,000 favorable
B) $25,500 unfavorable
C) $25,000 unfavorable
D) $25,500 favorable
Correct Answer:
Verified
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