The Apia Vineyard uses a special mix of compost to fortify the soil around the vines.The price standard used is $3.50 per sack of compost.During the year,the purchase price averaged $3.65 per sack.The vineyard purchased and used 1,560 sacks of compost during the year.Compute the direct materials price variance indicating whether it is favourable or unfavourable.
A) $266 F
B) $245 U
C) $227 U
D) $234 U
Correct Answer:
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