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In June, Indigo Manufacturing purchased 6,000 gallons of blue dye used to produce stone-washed denim ...
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In June, Indigo Manufacturing purchased 6,000 gallons of blue dye used to produce stone-washed denim ...
In June, Indigo Manufacturing purchased 6,000 gallons of blue dye used to produce stone-washed denim clothing. The price per gallon was $1.24 and the company used 5,400 gallons of the dye during the month. The standard price for the dye is $1.26. What is the materials price variance for Indigo for June?
▸ $120 favorable
▸ $108 unfavorable
▸ $108 favorable
▸ $120 unfavorable
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Managerial Accounting
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th
Author:
Davis
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$120 favorable
($1.26 - $1.24) × 6,000 = $120 favorable
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