Answer (A) is correct . The direct materials price variance equals the actual quantity used times the difference between the standard and actual price per unit. Thus, the unfavorable direct materials price variance is $14,355 [1,650 units × 58 actual pounds × ($1.50 standard price – $1.65 actual price)].
Answer (B) is incorrect because The variance of $14,850 is based on the standard unit quantity, not the actual quantity.
Answer (C) is incorrect because The price variance is unfavorable. The actual price is greater than the standard price.
Answer (D) is incorrect because The variance of $14,850 is based on the standard unit quantity, not the actual quantity.
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Ardmore’s direct materials price variance for May is
