Trendy T\'s Corporation manufacturest- shirts, which is its only product. The st

Question

Trendy T's Corporation manufacturest- shirts, which is its only product. The standards for t-shirts are as follows: Standard direct materials cost per yard Standard direct materials quantity pert-shirt (yards) $7.00 2.5 During the month of May, the company produced 1,800 t- shirts. Related production data for the month follows: Actual yards of direct material purchased Actual direct materials total cost 2,000 $16,400 What is the direct materials price variance for the month? OA. $3,800 favorable B. $3,800 unfavorable Oc. $2,400 favorable O D. $2,400 unfavorable

Explanation / Answer

Direct material price variance = (Standard price-actual price)actual quantity purchased

= (7*2000-16400)

Material price variance = 2400 Unfavourable

so answer is d) $2400 unfavourable

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.