Standard Gears produces lawn mower gears.It uses units as the cost driver for overhead.The following information was provided concerning its standard cost system:

\begin{array}{|l|l|l|l|}\hline{\text { Actual Data }} &&{\text { Budgeted and Stand ard Data }} \\\hline \text { Produced } & 12,400 \text { units } & \text { Budgeted units } & 12,500 \text { units } \\\hline \text { Materials purchased } & \begin{array}{c}4,650 \mathrm{lbs} . \text { for a total cost of } \\\$ 32,550\end{array} & \text { Budgeted materials } & 0.40 \mathrm{lb} . @ \$ 7.10 \text { per } \mathrm{lb} . \\\hline \text { Materials used } & 4,700 \mathrm{lbs} . &\text { Budgeted labor }& \begin{array}{c}36 \text { minutes } @ \$ 11.00 \text { per } \\\text { hour }\end{array} \\\hline \text { Labor worked } & 7,460 \text { hrs. costing } \$ 79,822 & \begin{array}{l}\text { Budgeted variable } \\\text { overhead }\end{array} & \$ 35,625 \\\hline \text { Actual overhead } & \begin{array}{l}\text { Fixed: } \$ 84,800 \\\text { Variable } \$ 36,100\end{array} & \begin{array}{l}\text { Budgeted fixed } \\\text { overhead }\end{array} & \$ 85,500 \\\hline\end{array}

How much is the direct material price variance?
A)$465 favorable
B)$1,846 favorable
C)$470 favorable
D)$2,201 favorable

Which One of the Following Is a Possible Cause of an Unfavorable

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge