Q1) 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 month of May, compute Rex's direct materials price variance?
A) $2,800 favorable
B) $2,800 unfavorable
C) $6,000 Unfavorable
D) $6,000 favorable