Respuesta :
Answer:
Price variance will be $4512.5 ( Unfavorable )
Explanation:
We have given standard material cost per yard = $2
Actual material cost per yard = $2.10
Standard yards per unit = 4.5
And actual yards per unit = 4.75
Units of production = 9500
Total number of actual quantity used = 9500×4.75 = 45125
So direct material price variance = ( standard price - actual price ) × actual quantity used = ( $2 - $2.1 ) × 45125 = -$4512.5
So price variance will be $4512.5 ( Unfavorable )
Based on the standard price, the actual quantity purchased, and the actual price, the direct materials price variance is $4,512.50 Unfavorable.
How do you calculate the direct materials price variance?
This can be found by the formula:
= (Actual price - Standard price) x Actual quantity purchased
Solving gives:
= (2.10 - 2.00) x (9,500 x 4.75)
= 0.10 x 45,125
= $4,512.50 Unfavorable
The actual price is more than the standard price so this is unfavorable.
Find out more on direct materials price variance at https://brainly.com/question/24264484.
#SPJ2