Answer (D) is correct . The total direct materials price variance is found by multiplying the difference between the standard price and the actual price by the actual quantity. The
Answer (A) is incorrect because Using the standard cost per unit for each direct material and reversing the order of subtraction results in $346,500 favorable.
Answer (B) is incorrect because Using the standard cost per unit for each direct material results in $346,500 unfavorable.
Answer (C) is incorrect because The price variance is unfavorable when the actual price is greater than the standard price.
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What is Funtime’s total direct materials price variance?
