The materials price variance for August is:

A) $2,900 U
B) $2,624 U
C) $2,900 F
D) $2,624 F

Question

The materials price variance for August is:A) $2,900 UB) $2,624 UC) $2,900 FD) $2,624 F

TAKIEDDINE BENDJILALI · Accepted Answer

Final Answer : A, Explanation :  AQ × AP = $118,900Materials price variance = (AQ × AP)? (AQ × SP)= ($118,900)? (29,000 kilos × $4.00 per kilo)= $118,900 ? $116,000= $2,900 UReference: CH09-Ref39The following materials standards have been established for a particular product:   The following data pertain to operations concerning the product for the last month:   The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for August is:

A) $2,900 U
B) $2,624 U
C) $2,900 F
D) $2,624 F

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