standard quantity per unit of output..... 6.8 meters standard price......... $14

Question

standard quantity per unit of output..... 6.8 meters standard price......... $14.40
The following data pertains to operations concerning theproduct for the last month: Actual material purchased...... 4,400 meters Actual cost of material purchased.... $60,500 Actual material used in production ... 3,800 meters Actual output... 400 units
What is the materials price variance for the month?
standard price......... $14.40
The following data pertains to operations concerning theproduct for the last month: Actual material purchased...... 4,400 meters Actual cost of material purchased.... $60,500 Actual material used in production ... 3,800 meters Actual output... 400 units
What is the materials price variance for the month?

Explanation / Answer

Materials PriceVariance    =  ( Actual Price- Standard Price ) x Actual Quantity                                        =   ($13.75 - 14.40 ) x 3,800 meters                                        =   $2470Favorable

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