Lucas Company has set standards for the manufacturing of clay pots to be 2 pounds of direct materials,per pot,at a cost of $3 per pound.During the current period,600 pounds of direct materials were purchased for $1842.All of the direct materials were used to manufacture 295 pots.Lucas's direct materials price variance was

Question

Quizplus · Accepted Answer

The direct materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. The actual price per pound is $1842 / 600 = $3.07. The standard price is $3.00. The variance is ($3.07 - $3.00) x 600 = $42 (U).

Lucas Company Has Set Standards for the Manufacturing of Clay