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)$660 U
B)$600 U
C)$660 F
D)$600 F

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)$660 U 
B)$600 U 
C)$660 F 
D)$600 F

Quizplus · Accepted Answer

Materials price variance = (AQ F1F1F1S1F1F1F10 AP)- (AQ F1F1F1S1F1F1F10 SP)
= $20,680 - (1,100 feet F1F1F1S1F1F1F10 $19.40 per foot)
= $20,680 - $21,340 = $660 F

The Following Materials Standards Have Been Established for a Particular