Answer:
$1,380
Explanation:
Data provided in the question:
Standard Direct materials cost = $8.65
Actual Direct materials cost = $8.05
Actual Direct materials = 2,300
Standard Direct materials = 1,040
Now,
The amount of direct materials price variance
= (Standard cost - Actual cost ) × Actual quantity
= ( $8.65 - $8.05 ) × 2,300
= 0.6 × 2,300
= $1,380