If the materials price variance is $600 F and the materials quantity and labour variances are each $450 U, what is the total materials variance?
A)$600 F
B)$450 U
C)$150 F
D)$1,050 U

Question

Quizplus · Accepted Answer

Total materials variance = materials price variance + materials quantity variance. 
Given that materials price variance is $600 F and materials quantity variance is $450 U. 
Thus, total materials variance = ($600 F) + ($450 U) = $150 F. Option C is correct. 
The labour variance mentioned in the question is not needed to calculate the total materials variance. Thus, option A and D are incorrect. Option B is incorrect because the given variances are both favourable (F) and unfavourable (U), and cannot cancel each other out.

If the Materials Price Variance Is $600 F and the Materials