Asked by Kavin Bahrani on Mar 10, 2024

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Verified

The materials price variance for August is:

A) $5,440 F
B) $6,320 F
C) $5,440 U
D) $6,320 U

Materials Price Variance

The difference between the actual cost of raw materials and the standard or expected cost, multiplied by the quantity of materials purchased.

  • Familiarize oneself with the notion and the mathematical determination of raw materials price variance.
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Verified Answer

JD
Johnice Dickerson

Mar 10, 2024

Final Answer :
D
Explanation :
Materials price variance = (AQ × AP)− (AQ × SP)
= ($195,920)− (31,600 kilos × $6.00 per kilo)
= $195,920 − $189,600
= $6,320 U