d City Products Inc (MCP) developed standard costs for drect material and drect

Question

d City Products Inc (MCP) developed standard costs for drect material and drect labor in 2017, MCP estimated the following standard costs for one of their most popular products Budgeted quantity 2 pounds Budgeted price 325 per pound $15 per hour Direct materials Direct labor During September, MCP produced and sold 1,000-nts using 2200 pounds ofdeea materials at an average cost per pound of S3 and 150 deed labor hours at an aver The direct material price variance during September is OA, S550 favorable O B. SSS0 unfavorable 2 hours C. $100 unfavorable OD. $100 favorable

Explanation / Answer

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

= (3.25-3.00)2200

Direct material price variance = 550 Favourable

so answer is a) 550 favourable

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