Question

The following standards have been established for a raw material used to make product O84: Standard quantity of the material per unit of output 7.6 meters Standard price of the material $ 18.80 per meter The following data pertain to a recent month's operations: Actual material purchased 3,900 meters Actual cost of material purchased $ 76,830 Actual material used in production 3,600 meters Actual output 550 units of product O84 The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month

Answer 1

The answer is "
`\$3,510 \ U`"

Step-by-step explanation:

Calculating the materials price variance:

`= (AQ * AP)\ ? \ (AQ * SP)\\\\= \$76,830 \ ? \ (3,900 * \$18.80) \\\\= \$76,830 \ ? \ (\$73,320) \\\\= \$3,510 \ U`