Johnston Manufacturing Company purchased 14,000 switches to…

Questions

Jоhnstоn Mаnufаcturing Cоmpаny purchased 14,000 switches to make 6,000 units. The standard allows for 2 switches per unit. The company actually used 12,500 to produce the 6,000 units. Johnson budgeted $0.75 per switch, but because they received a discount for purchasing more than 10,000 switches, they received a discount of $0.05 per switch and paid $0.70 each. What is Johnston’s direct materials price variance for the period?

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