Figure 9-1 Bender Corporation produced 100 units of Product AA.The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:

- Refer to Figure 9-1.What is the material price variance for Bender Corporation?
A) $27 (
B) $60 (
C) $33 (
D) $33 (

Question

Figure 9-1 Bender Corporation produced 100 units of Product AA.The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:

- Refer to Figure 9-1.What is the material price variance for Bender Corporation?
A) $27 (
B) $60 (
C) $33 (
D) $33 (

Quizplus · Accepted Answer

Material price variance = (actual price - standard price) x actual quantity

Actual quantity = 100 units x 1.5 pounds per unit = 150 pounds
Actual price = $8,375 / 150 pounds = $55.83 per pound (rounded to the nearest cent)
Standard price = $60 per pound

Material price variance = ($55.83 - $60) x 150 = -$33 (Favorable)

Therefore, the material price variance for Bender Corporation is $33 (F).

Figure 9-1 Bender Corporation Produced 100 Units of Product AA