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The Actual Cost of Direct Materials Is $50

Question 198

Multiple Choice

The actual cost of direct materials is $50.25 per pound.The standard cost per pound is $56.00.During the current period,6,800 pounds were used in production.The standard quantity for actual units produced is 6.500 pounds.How much is the direct materials price variance?


A) $37,375 favorable
B) $37,375 unfavorable
C) $39,100 favorable
D) $39,100 unfavorable

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