The actual cost of direct materials is $10.50 per pound. The standard cost per pound is $11.75. During the current period, 10,000 pounds were used in production and 11,500 pounds were purchased. The standard quantity for actual units produced is 9,900 pounds. How much is the direct materials price variance, assuming it is recorded at purchase point

$14,375 F

Explanation:

The standard cost per pound $11.75

Less actual cost of direct materials $10.50 per pound

Balance $1.25

Hence;

Purchased pound 11,500 × $1.25

= $14,375 F

Therefore the direct materials price variance, assuming it is recorded at purchase point will be $14,375 F

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