ACCA · Question 25 · E. Standard costing
A bespoke furniture maker has a standard material cost of 5 kg of oak per table at a standard price of $20 per kg.
During the month, the company purchased and used 600 kg of oak to produce 110 tables. The actual total cost of the oak purchased was $12,600.
What is the direct material price variance?
Answer options:
$600 Favorable
$600 Adverse
$1,000 Adverse
$1,600 Adverse
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