Please help explain what im doing wrong here. Oxford Co. has a material standard...
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Accounting
Please help explain what im doing wrong here.
Oxford Co. has a material standard of 2.1 pounds per unit of output. Each pound has a standard price of $10 per pound. During February, Oxford Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What is the direct materials price variance? A. $6,820 unfavorable B. $8,820 unfavorable C. $8,820 favorable D. $6,820 favorable
The answer is B. $8,820 U. This is how i did it- Direct Materials Price Variance = AQ x (SP - AP) AP= $57,220/4840 = 11.82 AQ= 4840 SQ= 2.1 x 2400 = 5040 DMPV= 4840 * (10 - 11.82) = - 8808.8
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