Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units:
$\begin{array}{ll}\text { Standard: }\
\text { Material } & 2 \text { pounds per urit } @ \$ 5.80 \text { per pound } \
\text { Labor } & 3 \text { direct labor hours per urit @ } \$ 10.00 \text { per hour }\\\text { Actual: }\
\text { Material } & 4,250 \text { pounds purchased and used @ } \$ 5.65 \text { per pound } \
\text { Labor } & 6,300 \text { directlabor hours at } \$ 9.75 \text { per hour }
\end{array}$ Refer to Strong Manufacturing Company.What is the material price variance?
A)$637.50 U
B)$637.50 F
C)$630.00 U
D)$630.00 F

Question

Quizplus · Accepted Answer

The material price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. Here, it is ($5.65 - $5.80) x 4,250 = $637.50 Favorable.

Strong Manufacturing the Following Information Is Available for Strong Manufacturing