Question 10 Walsh Corporation makes a product that uses a material with the quan

Question

Question 10 Walsh Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased. Not yet answered Points out of 2 P Flag question The materials price variance for January is: Select one: O a. $2,740 U Ob. $2,482 U Oc. $2,482 F O d. $2,740 F 0 Finish attempt Walsh College

Explanation / Answer

Answer is $2,740 U.

Actual Materials purchased = 27,400 gram
Actual Materials Cost = $6.10 per gram
Standard Materials Cost = $6.00 per gram

Materials Price Variance = Actual Materials purchased * (Actual Materials Cost - Standard Materials Cost)
Materials Price Variance = 27,400 * ($6.10 - $6.00)
Materials Price Variance = $2,740 Unfavorable

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