Cost and management accounting — A Level · 15 left
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Standard price = $5.00 per kilo; actual price = $5.40 per kilo; actual quantity purchased and used = 12 000 kilos. Direct material price variance = (standard price - actual price) x actual quantity. A negative result is adverse.
Zephyr Ltd has a standard direct material price of $5.00 per kilo. During the period it purchased and used 12 000 kilos at an actual price of $5.40 per kilo. Calculate the direct material price variance, in $. Give the value only, using a minus sign if the variance is adverse.
[3 marks]
🧭Modelled on Cambridge 9706 · Oct/Nov 2025 · Paper 43 · Q1(b)(i)
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