Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The Materials Price Variance for August would be recorded as a:
A)Credit of $112
B)Credit of $300
C)Debit of $112
D)Debit of $300

Question

Florea Corporation has provided the following data concerning its most important raw material,compound K09B:  The raw material was purchased on account. The Materials Price Variance for August would be recorded as a:
A)Credit of $112 
B)Credit of $300 
C)Debit of $112 
D)Debit of $300

Quizplus · Accepted Answer

Materials price variance = AQ × (AP - SP)
= 1,500 liters × ($26.70 per liter - $26.50 per liter)
= 1,500 liters × ($0.20 per liter)
= $300 U
An unfavorable variance is debite

Florea Corporation Has Provided the Following Data Concerning Its Most