Accounting · Variance Analysis
The standard direct material cost per unit for a product is 10.5 litres at $2.50 per litre. Last month, the actual price paid for 12,000 litres of material used was 4% above standard, and the direct material usage variance was $1,815 favourable. No inventory of material is held. What was the adverse direct material price variance for last month?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$1,000
- 2$1,200✓
- 3$1,212
- 4$1,260
Correct answer
$1,200
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