Compute the Variance analysis of direct Materials.
Information on Rex Co.'s direct material costs for May follows:
|
Actual quantity of direct materials
|
30,000
|
pounds
|
|
Actual cost of direct materials.......................................
|
$84,000as
|
|
|
Unfavorable direct materials quantity variance............
|
$3,000
|
|
|
Standard quantity of direct materials ...........................
|
29,000
|
pounds
|
For the month of May, what was Rex's direct materials price variance?
A) $2,800 favorable
B) $2,800 unfavorable
C) $6,000 Unfavorable
D) $6,000 favorable