Candy Stores Inc.gives you the following information: The standard material cost is $7 per pound for a 15 pound bag of chocolate.The following is the actual cost and usage data:

-Using the above information provided for Candy Stores,compute the direct materials price variance for Candy Stores.
A)$186,000 (
B)$186,000 (
C)$42,000 (

Question

Candy Stores Inc.gives you the following information: The standard material cost is $7 per pound for a 15 pound bag of chocolate.The following is the actual cost and usage data:
 
-Using the above information provided for Candy Stores,compute the direct materials price variance for Candy Stores.
A)$186,000 (
B)$186,000 (
C)$42,000 (

Quizplus · Accepted Answer

The direct materials price variance is calculated as the difference between the actual cost of materials and the standard cost of materials for the actual quantity used. The choice $186,000 (F) indicates a favorable variance, meaning the actual cost was less than the standard cost.