TB MC Qu. 10-60 Gipple Corporation makes a product that uses Gipple Corporation

Question

TB MC Qu. 10-60 Gipple Corporation makes a product that uses Gipple Corporation makes a product that uses a material with the quantity standard of 7.8 grams per unit of output and the price standard of $6.50 per gram. In January the company produced 3,900 units using 25,370 grams of the direct material. During the month the company purchased 27,900 grams of the direct material at $6.70 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Cholce $6,084 F $5,580 U $6,084 U $5,580 F

Explanation / Answer

Material price variance = (standard price-actual price)actual quantity purchased

= (6.50-6.70)27900

Material price variance = 5580 U

so answer is b) $5580 U

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.