This Test: 100 pts possible Question Help This Question: 10 pts | 10 of 10 (0 co

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This Test: 100 pts possible Question Help This Question: 10 pts | 10 of 10 (0 complete) Oliver Enterprises has collected the following data for one of its products Direct materials standard (4 pounds per unit @ $0.45/lb.) Actual direct materials purchased Actual Direct Materials Used (AQU) Actual Price (AP) paid per pound $1.80 per finished good $39,000 pounds 33,000 pounds How much is the direct materials price variance? OA. $5,460 unfavorable O B. $4,620 unfavorable O C. $5,460 favorable O D. $4,620 favorable

Explanation / Answer

Direct material price variance = AQ*(AP-SP) = 39000*(0.59-0.45) = 5460 unfavorable

option A is the correct answer

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