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Question - Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows:
Standard direct materials cost per yard: $8
Standard direct materials quantity per t-shirt (yards): 1.5
During the month of May, the company produced 1,250 t-shirts. Related production data for the month follows:
Actual yards of direct material purchased: 1,400
Actual direct materials total cost: %15,500
What is the direct materials price variance for the month?
A) $3,800 favorable
B) $4,300 unfavorable
C) $3,800 unfavorable
D) $4,300 favorable
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