Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July:           Standard quantity of direct materials for the units manufactured (SQ)   30,000   Direct materials purchases—actual cost $ 63,000   Standard price per unit of direct materials (SP) $ 2.00   Direct material efficiency variance—favorable $ 4,500       All materials purchased during the month were issued to production. What was the direct materials price variance for July, rounded to the nearest dollar?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...
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Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July:

 

       
Standard quantity of direct materials for the units manufactured (SQ)   30,000  
Direct materials purchases—actual cost $ 63,000  
Standard price per unit of direct materials (SP) $ 2.00  
Direct material efficiency variance—favorable $ 4,500  
 

 

All materials purchased during the month were issued to production.

What was the direct materials price variance for July, rounded to the nearest dollar?

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