The Koski Company has established standards as follows: Actual production figures for the past year were as follows:
-The materials price variance is:
A) $160 U
B) $6,300 U
C) $300 U
D) $150 U

Question

The Koski Company has established standards as follows:  Actual production figures for the past year were as follows: 
-The materials price variance is:
A) $160 U 
B) $6,300 U 
C) $300 U 
D) $150 U

Quizplus · Accepted Answer

The materials price variance is calculated as the difference between the actual cost and the standard cost of materials, multiplied by the actual quantity used. The correct choice is $300 U, indicating an unfavorable variance.

The Koski Company Has Established Standards as Follows: Actual