A company established a direct material standard of 2 pounds of material at a cost...
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Accounting
A company established a direct material standard of 2 pounds of material at a cost of $6 per pound for unit produced. During August the company produced 6,000 units of product; 10,000 pounds of direct material that cost $6.50 per pound were used in the production process. Compute the direct material price variance for August.
$12,000 unfavorable
$7,000 favorable
$5,000 favorable
$5,000 unfavorable
$12,000 favorable
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