Answer:
Direct material price variance= $966.4 unfavorable
Explanation:
Giving the following information:
Actual level of activity was 15,100 skeins.
Standard cost= $0.51 per skein.
The actual dye cost last month was $8,660.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 8,660 / 15,100= $0.574
Direct material price variance= (0.51 - 0.574)*15,100
Direct material price variance= $966.4 unfavorable