Backyard Creations purchased 7,000 feet of copper tubing at a price of $2.70 per foot and used 7,200 feet during the period.The standard price of the copper tubing was $2.50 per foot.What is Backyard Creations' direct materials price variance for the period?

Question

Quizplus · Accepted Answer

The actual cost of the copper tubing purchased is:
$2.70 x 7,000 ft = $18,900

The expected cost of the copper tubing used is:
$2.50 x 7,200 ft = $18,000

The direct materials price variance is calculated as:
Actual cost - Expected cost
$18,900 - $18,000 = $900 unfavorable

Therefore, the correct answer is B: $1,400 unfavorable.

Backyard Creations Purchased 7,000 Feet of Copper Tubing at a Price