Johnston Manufacturing Company Purchased 14,000 Switches to Make 6,000 Units

Multiple Choice

Johnston Manufacturing Company purchased 14,000 switches to make 6,000 units.The standard allows for 2 switches per unit.The company actually used 12,500 to produce the 6,000 units.Johnston budgeted $0.75 per switch, but because they received a discount for purchasing more than 10,000 switches, they received a discount of $0.05 per switch and paid $0.70 each.What is Johnston's direct materials price variance for the period?

A) $500 favorable
B) $600 favorable
C) $625 favorable
D) $700 favorable