All Coronado Industries produces a product requiring 4 pounds of material costing $3.50 per pound. During December, All Coronado purchased 4700 pounds of material for $15792 and used the material to produce 500 products. What was the materials price variance for December

Direct material price variance = $658 favorable

Explanation:

Giving the following information:

Standard cost = $3.50 per pound.

During December, All Coronado purchased 4700 pounds of material for $15,792.

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance = (standard price - actual price) * actual quantity

Actual price = 15,792/4,700 = $3.36

Direct material price variance = (3.5 - 3.36) * 4,700

Direct material price variance = $658 favorable