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Joshua Nerio
on Dec 16, 2024

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Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials price variance?

A) $3,000 favorable
B) $3,000 unfavorable
C) $2,880 favorable
D) $2,880 unfavorable

Direct Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.

Actual Costs

The real expenses incurred for goods, services, or other operational activities during a specific period of time.

Standard Costs

The practice of assigning an expected cost to products, with the aim of assessing performance by comparing these costs to actual costs.

  • Calculate and clarify the deviations in the cost and quantity of direct materials.
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vanessa olsonDec 18, 2024
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