The following materials standards have been established for a particular product:
The following data pertain to operations concerning the product for the last month:
What is the materials price variance for the month?
A) $3,141 U
B) $2,025 U
C) $8,600 U
D) $8,725 U

Question

The following materials standards have been established for a particular product:
 The following data pertain to operations concerning the product for the last month:
 What is the materials price variance for the month?
A) $3,141 U 
B) $2,025 U 
C) $8,600 U 
D) $8,725 U

Quizplus · Accepted Answer

Materials price variance = (AQ × AP) - (AQ × SP)
= $141,345 - (8,100 meters × $17.20 per meter)
= $141,345 - $139,320
= $2,025 U

The Following Materials Standards Have Been Established for a Particular