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Nastasia [14]
3 years ago
13

The following standards have been established for a raw material used to make product O84: Standard quantity of the material per

unit of output 7.6 meters Standard price of the material $ 18.80 per meter The following data pertain to a recent month's operations: Actual material purchased 3,900 meters Actual cost of material purchased $ 76,830 Actual material used in production 3,600 meters Actual output 550 units of product O84 The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month
Business
1 answer:
Nikolay [14]3 years ago
6 0

Answer:

The answer is "\$3,510 \ U"

Explanation:

Calculating the materials price variance:

= (AQ \times  AP)\  ? \ (AQ \times SP)\\\\= \$76,830 \ ? \ (3,900 \times \$18.80) \\\\= \$76,830 \ ? \ (\$73,320) \\\\= \$3,510 \ U

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