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    Important information about Materials price variance

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    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

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    https://brainmass.com/business/financial-accounting-bookkeeping/important-information-materials-price-variance-127569

    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

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