Question

the following company information is available for march. the direct materials price variance is:
direct materials purchased and used 4,200 feet @ $90 per foot
standard costs for direct materials for march production 4,300 feet @ $88 per foot
multiple choice
$8,400 unfavorable.
$8,600 unfavorable.
$8,600 favorable.
$400 favorable.
$8,400 favorable.

Explanation:

Step1: Recall the formula for direct materials price variance

The formula for direct materials price variance is \( \text{Direct Materials Price Variance}=( \text{Actual Price}-\text{Standard Price})\times\text{Actual Quantity} \)

Step2: Identify the values

Here, the actual quantity (\(AQ\)) of direct materials purchased and used is \(4200\) feet, the actual price (\(AP\)) is \(\$90\) per foot, and the standard price (\(SP\)) is \(\$88\) per foot.

Step3: Calculate the price variance

Substitute the values into the formula:

$$
LATEXBLOCK0
$$

Since the actual price (\(\$90\)) is greater than the standard price (\(\$88\)), the variance is unfavorable.

Answer:

\(\$8,400\) unfavorable.