Knowledge Check 01 Zeta Corporation is a manufacturer of sports caps, which require soft fabric. The standards for each cap allow 2.00 yards of soft fabric, at a cost of $2.00 per yard. During the month of January, the company purchased and used 25,000 yards of soft fabric at $2.10 per yard, to produce 12,000 caps. What is Zeta Corporation's materials price variance for the month of January

The difference between the standard cost and actual cost for the purchased actual quantity of material is the direct material price variance.

The formulae for the direct Materials price variance is (Standard price – Actual price) * Actual quantity purchased

Given Information

The standard fabric for each cap is 2.00 yard

The standard price per yard is $2.00 per yard

Actual price per yard is $2.10

Actual Quantity is 25,000 yards

Materials price variance = (Standard price - Actual Price) * Actual Quantity

Materials price variance = ($2.00 - $2.10)*25,000

Materials price variance = $0.10*25,000 yard Unfavorable

Materials price variance = $2,500 Unfavorable

Therefore, Zeta Corporation's materials price variance for the month of January is $2,500 Unfavorable.

See similar solution here

brainly.com/question/13033025