Remaining Time: 1 hour, 57 minutes, 44 seconds. Question Completion Status: Stan

Question

Remaining Time: 1 hour, 57 minutes, 44 seconds. Question Completion Status: Standard quantity.. 3.0 kilos per unit Standard price.. Standard cos6.00 per unit $2.00 per kilo The company budgeted for production of 1,300 units in June, but actual production was 1,200 units. The company used 3,750 kilos of direct material to produce this output. The company purchased 4,100 kilos of the direct material at a total cost of $8,610. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for June is A, S 360 F B. $ 410u C. $ 410E D. $ 360 U E. none of the above

Explanation / Answer

Material Price variance for June:

= (Standard price * Actual Quantity) - (Actual price * Actual Quantity)

= (2*4100) - (8610)

= 8200 - 8610

= - 410

= 410 Unfavorable.

Therefore, the right answer is option (b) 410 U

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