Mathematics · Cost Accounting - Standard Costing
The standard direct material cost per unit for a product is calculated as 10.5 liters at $2.50 per liter. Last month, the actual price paid for 12,000 liters of material used was 4% above standard, and the direct material usage variance was $1,815 favorable. No inventory of material is held. What was the adverse direct material price variance for last month?
- 1$1,260
- 2$1,212
- 3$1,200✓
- 4$1,000
Correct answer
$1,200
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