Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labour for the 100 units of Product AA are as follows:
$\begin{array}{lll}
\text { Materials: }&&\text {Standard}&\text { Actual}\
\text { Standard: } & 200 \text { kilograms at } \$ 3.00 \text { per kilogram } & \$ 600 \
\text { Actual: } & 220 \text { kilograms at } \$ 2.85 \text { per kilogram }&&\$627\
\
\text { Direct labour: }\
\text {Standard:}&\text { 400 hours at }\$ 15.00 \text {per hour}& 6,000\
\text { Actual:}&\text { 368 hours at }\$ 16.50 \text { per hour}&&6,072
\end{array}$
-Refer to the figure.What is the material price variance for Bender Corporation?
A)$27 (U)
B)$33 (F)
C)$33 (U)
D)$60 (F)

Question

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labour for the 100 units of Product AA are as follows:
$\begin{array}{lll}
\text { Materials: }&&\text {Standard}&\text { Actual}\
\text { Standard: } & 200 \text { kilograms at } \$ 3.00 \text { per kilogram } & \$ 600 \
\text { Actual: } & 220 \text { kilograms at } \$ 2.85 \text { per kilogram }&&\$627\
\
\text { Direct labour: }\
\text {Standard:}&\text { 400 hours at }\$ 15.00  \text {per hour}& 6,000\
\text { Actual:}&\text { 368 hours at }\$ 16.50 \text { per hour}&&6,072 
\end{array}$
-Refer to the figure.What is the material price variance for Bender Corporation?
A)$27 (U)
B)$33 (F)
C)$33 (U)
D)$60 (F)

Quizplus · Accepted Answer

The material price variance is calculated as (Actual Quantity x Actual Price) - (Actual Quantity x Standard Price). Here, it is (220 x $2.85) - (220 x $3.00) = $627 - $660 = $33 Favorable (F).

Bender Corporation Produced 100 Units of Product AA -Refer to the Figure