?$40,000 lower $50,000 higher O $100,000 lower QUESTION 25 4 point Cuda Corporat

Question

?$40,000 lower $50,000 higher O $100,000 lower QUESTION 25 4 point Cuda Corporation makes a Standard quantity Standard price$6.00/per pound Standard cost 6.5 pounds per unit $39.00/per unit The company budgeted for production of 3 company used 23,050 pounds of direct material to produce this output. The company purchased 26,000 pounds of the direct material at a total cost of $158,600. The direct materials purchases variance is computed when the materials are 500 units in November, but actual production was 3,300 units. The . purchased. The materials price variance for November is O $2,145 U O$2,145 $2,600 u $2,600F

Explanation / Answer

material price variance for november is = (AQ) (AP - SP)

   = 26,000 [( $158,600 / 26,000 units ) - ( $ 6 per pound)]

   = 26,000 [ $6.10 - $ 6.00 ]

= $2,600 Unfavourable.

the material price variance is option C i.e., $2,600 U

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