Answer:
c. The direct materials price variance is $640 (Favorable)
Explanation:
Provided, budgeted and actual information we have,
Direct Material Price Variance = (Standard Price - Actual Price) [tex]\times[/tex] Actual Quantity.
Given standard price per unit = $0.20
Actual price per unit = $0.18
Actual Quantity = 32,000 pounds
Variance = ($0.20 - $0.18) [tex]\times[/tex] 32,000 = $640 Favorable as the actual price is less than budgeted price.