Answered

For all your questions, big or small, IDNLearn.com has the answers you need. Ask your questions and receive comprehensive, trustworthy responses from our dedicated team of experts.

Gipple Corporation makes a product that uses a material with the quantity standard of 7.8 grams per unit of output and the price standard of $6.50 per gram. In January the company produced 3,900 units using 25,370 grams of the direct material. During the month the company purchased 27,900 grams of the direct material at $6.70 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is:

Sagot :

Facundobuzzettiidn

Answer:

Direct material price variance= $5,580 unfavorable

Explanation:

Giving the following information:

The standard price of $6.50 per gram.

During the month the company purchased 27,900 grams of the direct material at $6.70 per gram.

To calculate the direct material price variance, we need to use the following formula:

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

Direct material price variance= (6.5 - 6.7)*27,900

Direct material price variance= $5,580 unfavorable

Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. Thank you for visiting IDNLearn.com. We’re here to provide clear and concise answers, so visit us again soon.