Exercise D6-6 Washington WaterWorks manufactures snorkel gear. During the past m

Question

Exercise D6-6 Washington WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,000 pounds of plastic to use in its dive masks, at a cost of $6,800 The standard price for the plastic is $1.6 per pound. The company actually used 3,800 pounds of the plastic to produce 15,000 dive masks Calculate Washington's direct materials price variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct material price variance Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Direct Materials Price variance =

= (Actual Quantity * Actual Price ) - ( Actual Quantity * Standard price)

= ( $ 6,800 ) - ( 4,000 * $ 1.6)

= $ 400 UnFavorable

Hence the correct answer is $ 400 Unfavorable

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