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Mateiral Price and Material Quantity Variance

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The following standards have been established for a raw material used to make product I 98:

Standard quantity of the material per unit of output 4.5 pounds
Standard price of the material $ 13.90 per pound

The following data pertain to a recent month's operations:

Actual material purchased 2,000 pounds
Actual cost of material purchased $26,200
Actual material used in production 1,300 pounds
Actual output 220 units of product I 98

A- What is the materials price variance for the month?
B- What is the materials quantity variance for the month?

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Solution Summary

This solution helps with a question about accounting. It helps find the material price variance and material quantity variance for the month.

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Standard quantity of the material per unit of output 4.5 pounds
Standard price of the material $ 13.90 per pound

The following data pertain to a recent month's operations:

Actual material purchased ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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