The following company information is available for January. The direct materials price variance is:
A) $5,000 favorable.
B) $300 favorable.
C) $5,200 unfavorable.
D) $5,000 unfavorable.
E) $5,200 favorable.

Question

Quizplus · Accepted Answer

The direct materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. The information provided suggests a $5,000 unfavorable variance, indicating that the actual cost of materials was higher than the standard cost.

The Following Company Information Is Available for January