6. Carskadon Corporation makes a product that uses a material with the following

Question

6. Carskadon Corporation makes a product that uses a material with the following direct material standards: Standard quantity 2.2 pounds per unit Standard price $2.00 per pound The company produced 3,000 units in December using 6,270 pounds of the material. During the month, the company purchased 7,100 pounds of the direct material at a total cost of $13,490. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for December is: A. $710 F B. $710 U C. $660 F D. $660 U

Explanation / Answer

C. $660

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