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X operates a standard marginal costing system.

Author:
January 13th, 2018

X operates a standard marginal costing system. The following budgeted and standard cost information is available:Budgeted production and sales 10,000 unitsDirect material cost – 3 kg x $10 $30 per unitActual results for the period were as follows:Production and sales 11,500 unitsDirect material – 36,000 kg $342,000The direct material price variance isA. $18,000 adverseB. $3,000 adverseC. $3,000 favourableD. $18,000 favourable

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