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Important information about Materials price variance

The following material standards have been established for a partiuclar raw material used in the company's sole product:

standard quantity per unit of output .1 pound
standard price $18.20 per pound

Following data pertain to operations for the last month:

actual materials purchased 5700 pounds
actual cost of materials purchased $100,320
actual materials used in production 5600 pounds
actual output 55,800 units

What is the materials price variance for the month

A 1820 U
B 1760 U
C 3420 F
D 352 U

Solution Preview

The following material standards have been established for a partiuclar raw material used in the company's sole product:

standard quantity per unit of output .1 pound
standard price ...

Solution Summary

This solution is comprised of a detailed explanation to find the materials price variance.

$2.19