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Johnston Manufacturing Company purchased 14,000 switches to make 6,000 units. The standard allows ...

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Johnston Manufacturing Company purchased 14,000 switches to make 6,000 units. The standard allows ...

Johnston Manufacturing Company purchased 14,000 switches to make 6,000 units. The standard allows for 2 switches per unit. The company actually used 12,500 to produce the 6,000 units. Johnston budgeted $0.75 per switch, but because they received a discount for purchasing more than 10,000 switches, they received a discount of $0.05 per switch and paid $0.70 each. What is Johnston's direct materials price variance for the period?

▸ $625 favorable

▸ $600 favorable

▸ $500 favorable

▸ $700 favorable

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Managerial Accounting

Edition: 4^th

Author: Davis

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