Asked by Kavin Bahrani on Mar 10, 2024

Verified

The materials price variance for August is:

A) $5,440 F

B) $6,320 F

C) $5,440 U

D) $6,320 U

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.

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

= ($195,920)− (31,600 kilos × $6.00 per kilo)

= $195,920 − $189,600

= $6,320 U

## Learning Objectives

- Familiarize oneself with the notion and the mathematical determination of raw materials price variance.