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Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: Materials: Standard Actual Standard: 210 pounds at $3.00 per pound $630 Actual: 240 pounds at $2.85 per pound $684 Direct labor: Standard: 400 hours at $15.00 per hour 6,000 Actual: 368 hours at $16.50 per hour 6,072 What is the material price variance for Bender Corporation?

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facundobuzzetti

Answer:

Direct material price variance= $36 favorable

Explanation:

Giving the following information:

The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:

Materials: Standard  210 pounds at $3.00 per pound

Actual: 240 pounds at $2.85 per pound

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (3 - 2.85)*240= $36 favorable

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