Remaining Time: 1 hour. 38 minutes, 15 seconds. w Question Completion Status: 4

Question

Remaining Time: 1 hour. 38 minutes, 15 seconds. w Question Completion Status: 4 points Updyke Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.8 kilos per unit Standard price $7.00 pet kilo Updyke produced 5,600 units in October using 21,750 kilos of the material. During the month, Updyke purchased 24,800 kilos of the direct material at a total of $168,640. The direct materials purchases variance is computed when the materials are purchased The materials price variance for October is: D A. $ 4,256 F @ B. $ 4,256 U D C.$4,960 F D.$4,960 U Wedn E. 7/25/ none of the above

Explanation / Answer

Material Price variance =(Actual Quantity*Actual Price)-(Actual Quantity*Standard price) =($168640)-(24800 kilos*$7) =($168640)-($173600) 4960 Favourable Answer is C. 4960 Favourable

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