Timothy Company has the following information available for October when 3,000 u

Question

Timothy Company has the following information available for October when 3,000 units are produced:

Standard materials cost per unit

3.0 pounds at $4.10 per pound

Actual data for October:

Materials purchased

12,300 pounds at $4.20 per pound.

Materials used

11,750 pounds

The materials price variance is:

Timothy Company has the following information available for October when 3,000 units are produced:

Standard materials cost per unit

3.0 pounds at $4.10 per pound

Actual data for October:

Materials purchased

12,300 pounds at $4.20 per pound.

Materials used

11,750 pounds

The materials price variance is:

Explanation / Answer

materials price variance = ( standard rate - actual rate) * actual quantity

materials price variance = (4.10 - 4.20) * 11750 = - 1175

its negative value so its unfavourable

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