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Mail-MAITHEWFLOY ezto.mhedu LinkedIn office PostUniversity-/ Home-BankMobile??ultiPro M Gmail w Equifax portal ? Power Bill manufactures a single product in which varlable manufacturing overheed is assigned on the s. The company uses a standard cost system and has established the basis of standard direct lebor-hour following standards for one unit of product Standard Price or Rate $4.00 per pound Standard Cost $8.00 6.0 $1.35 Standard Direct materials Direct labor Vartable manufacturing overhead 0.6 hours 0.6 hours 52 25 per hour During March, the following activity was recorded by the company The company produced 3,800 units during the month A total of 11,100 pounds of material were purchased at a cost of $31.080 There was no beginning inventory of matenals on hand to start th 2.220 pounds of material remained in the warehouse During March, 2.480 direct labor-hours were worked at a rate of $10 50 per hour e month; at the end of the month Vanabie manufacturing overnead costs during March totaled $3,548 The direct materials purchases variance is computed when the matenals are purchased The materials price vaniance for March is O $13.320 U O $16.480 F O $16.480 U O $13,320 F O Type here to search

Explanation / Answer

Ans) Option D 13,320 F

Where,
   SP is the standard unit price of direct material
   AP is the actual price per unit of direct material
   AQ is the actual quantity of direct material used

= 11,100 X 4 - 31080

= 13320 F

DM Price Variance = ( SP ? AP ) × AQ

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