Asked by Kennedy Bulman on Apr 27, 2024
Verified
The materials price variance for July is:
A) $2,100 U
B) $2,420 F
C) $2,100 F
D) $2,420 U
Materials Price Variance
The difference between the actual cost of materials purchased and the standard cost, multiplied by the quantity of materials acquired.
July
The seventh month of the year in the Gregorian calendar, known for marking the midpoint of the calendar year.
- Acquire knowledge on the calculation of materials price variance.
- Analyze the components that differentiate a favorable (F) from an unfavorable (U) variance.
Verified Answer
JB
Jesus BautistaApr 28, 2024
Final Answer :
D
Explanation :
Materials price variance = AQ × (AP − SP)
= 12,100 grams × ($1.20 per gram − $1.00 per gram)
= 12,100 grams × ($0.20 per gram)
= $2,420 U
= 12,100 grams × ($1.20 per gram − $1.00 per gram)
= 12,100 grams × ($0.20 per gram)
= $2,420 U
Learning Objectives
- Acquire knowledge on the calculation of materials price variance.
- Analyze the components that differentiate a favorable (F) from an unfavorable (U) variance.