Answer:
The correct answer is B.
Explanation:
Giving the following information:
Actual materials quantity: 90,000 pounds
Total actual cost: $47,200 + 6,200= $53,400
Standard materials quantity: 5.5 pounds/unit
Standard price: $0.55/pound
Units made: 16,300
We need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (0.55 + 53,400/90,000)*90,000= $3,900 unfavorable