Gipple Corporation makes a product that uses a material with the quantity standard of 8.7 grams per unit of output and the price standard of $7.40 per gram. In January the company produced 4,800 units using 26,270 grams of the direct material. During the month the company purchased 28,800 grams of the direct material at $7.60 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is:

Respuesta :

Answer:

price variance      $(5,760.00) UNFAVORABLE

Explanation:

materials price variance:

[tex](standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance[/tex]

std cost                            $7.40

actual cost                    $7.60

quantity                     28,800

[tex](7.40-7.60) \times 28,800= DM \: price \: variance[/tex]

difference                   $(0.20)

price variance      $(5,760.00)