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Myers Corporation has the following data related to direct materials costs for November: actual cost for 5,000 pounds of material at $4.50 per pound and standard cost for 4,800 pounds of material at $5.10 per pound. The direct materials price variance is a.$3,000 favorable b.$2,880 unfavorable c.$3,000 unfavorable d.$2,880 favorable

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Answer:

a. $3,000 favorable

Explanation:

Calculation to determine the direct materials price variance

Using this formula

Direct materials price variance=Actual costs(Standard costs per pound- Actual costs per pound)

Let plug in the formula

Direct materials price variance=5,000($5.10-$4.50)

Direct materials price variance=5,000($0.6)

Direct materials price variance=

$3,000 favorable

Therefore Direct materials price variance is $3,000 favorable

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