Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and usage data,compute the direct materials price variance.
$\begin{array}{ll}
\text { Direct materials purchased and used } & 99,000 \text { pounds } \
\text { Price paid for direct materials } & \$ 4.00 \text { per pound } \
\text { Number of good units produced } & 9,000 \text { units }
\end{array}$

Question

Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and usage data,compute the direct materials price variance. 
$\begin{array}{ll}
\text { Direct materials purchased and used } & 99,000 \text { pounds } \
\text { Price paid for direct materials } & \$ 4.00 \text { per pound } \
\text { Number of good units produced } & 9,000 \text { units }
\end{array}$

Quizplus · Accepted Answer

The Answer of Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and usage data,compute the direct materials price variance. 
$\begin{array}{ll}
\text { Direct materials purchased and used } & 99,000 \text { pounds } \
\text { Price paid for direct materials } & \$ 4.00 \text { per pound } \
\text { Number of good units produced } & 9,000 \text { units }
\end{array}$

Using the Standard Costs of $5 Per Pound for a 10