Question

Crane WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,160 pounds of plastic to use in its dive masks, at a cost of $6,684. The standard price for the plastic is $1.581 per pound. The company actually used 3,940 pounds of the plastic to produce 19,900 dive masks. Calculate Crane’s direct materials price variance for the month.

Answer 1

Answer:

$107.04 unfavorable

Explanation:

The computation of the material price variance is shown below:

= Actual Quantity × Actual price - Actual Quantity × Standard Price

= $6,684 - (4,160 pounds × $1.581 per pound)

= $6,684 - $6576.96

= $107.04 unfavorable

The  $6,684 represents the actual quantity and the actual price.

All other information which is given is not relevant. Hence, ignored it