Figure 1
Max Company has developed the following standards for one of its products:
The following activities occurred during the month of October:
The company records materials price variances at the time of purchase.

-Refer to Figure 1. Max's materials price variance would be
A) £50,000 favorable
B) £50,000 unfavorable
C) £10,000 unfavorable
D) £10,000 favorable

Question

Figure 1
Max Company has developed the following standards for one of its products:
The following activities occurred during the month of October:
  The company records materials price variances at the time of purchase.
 
-Refer to Figure 1. Max's materials price variance would be
A) £50,000 favorable 
B) £50,000 unfavorable 
C) £10,000 unfavorable 
D) £10,000 favorable

Quizplus · Accepted Answer

The materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. Without the specific figures from Figure 1, we assume the calculation leads to a £10,000 unfavorable variance based on the given options.

Figure 1 Max Company Has Developed the Following Standards for One of One