Question

Taany Company produces chairs. Standard costs for one unit of production are as follows: Direct material...

Taany Company produces chairs. Standard costs for one unit of production are as follows:

Direct material

4

pounds

@

$5.00

Direct labor

1

hour

@

$10.00

Each unit needs

0.50

hour

Variable overhead

1

DLH

@

$6.00

Production in units

3,000

Material purchased in pounds

11,200

@

$4.80

Material used in pounds

12,200

Direct labor worked in machine hours

1,450

@

$10.10

Actual variable overhead incurred

$9,100.00

Find

Direct material price variance
a.

$2,240
b.

($2,240)
c.

$2,040
d.

($2,040)
e.

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