The materials price variance for April is:

A) $1,860 U
B) $1,860 F
C) $1,560 U
D) $1,560 F

Question

The materials price variance for April is:A) $1,860 UB) $1,860 FC) $1,560 UD) $1,560 F

Jesus Alvarez · Accepted Answer

Final Answer : A, Explanation :  Materials price variance = AQ × (AP ? SP)= 18,600 liters × ($1.10 per liter ? $1.00 per liter)= 18,600 liters × ($0.10 per liter)= $1,860 UReference: CH09-Ref42Solly Corporation produces a product for national distribution.Standards for the product are:• Materials: 12 ounces per unit at 60¢ per ounce.• Labor: 2 hours per unit at $8 per hour.During the month of December, the company produced 1,000 units.Information for the month follows:• Materials: 14,000 ounces purchased and used at a total cost of $7,700.• Labor: 2,500 hours worked at a total cost of $20,625.

The materials price variance for April is:

A) $1,860 U
B) $1,860 F
C) $1,560 U
D) $1,560 F

Definitions

Learning Objectives

Learning Objectives

Related questions