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27 November, 20:02

Keegan Inc. budgeted? 10,500 pounds of direct materials costing? $18.00 per pound to make? 4,900 units of product. The company actually purchased? 10,600 pounds of direct materials costing? $27.50 per pound to make the? 4,900 units. What is the direct materials price? variance?

A.$99,750 unfavorable

B.$100,700 favorable

C.$100,700 unfavorable

D.$99,750 favorable

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  1. 27 November, 22:29
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    C.$100,700 unfavorable

    Explanation:

    The computation of the material price variance is shown below:

    = Actual Quantity * (Standard Price - Actual Price)

    = 10,600 pounds * ($18 - $27.50)

    = 10,600 pounds * $9.5

    = $100,700 unfavorable

    Simply we take the difference between the standard and actual price and then multiplied it by the actual quantity so that the actual amount can come.
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