Answered

Uncover valuable information and solutions with IDNLearn.com's extensive Q&A platform. Our experts are available to provide in-depth and trustworthy answers to any questions you may have.

The following materials standards have been established for a particular product: Standard quantity per unit of output 6.0 meters Standard price $ 19.00 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased 10,200 meters Actual cost of materials purchased $ 201,500 Actual materials used in production 9600 meters Actual output 1580 units What is the materials price variance for the month

Sagot :

Ayokenny2001idn

Answer:

See below

Explanation:

First, we have to compute the actual price

Actual price = Actual cost of material purchased × Actual material purchased

= $201,500 ÷ 10,200 metres

= $19.75

Therefore,

Material price variance

= Actual quantity × (Actual price - Standard price)

= 10,200 × ($19.75 - $19)

= 10,200 × $0.75

= $7,650 favourable

Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Find precise solutions at IDNLearn.com. Thank you for trusting us with your queries, and we hope to see you again.