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Maple Company's flexible budget,based upon the number of equivalent units produced,called for the use of 5,000 square yards of fabric at a standard cost of $2.45 per square yard.The Production Department actually used 5,200 square yards costing $2.35 per square yard during June.
-The materials price variance for Maple Company for June is:
A)$520 favorable.
B)$990 favorable.
C)$30 unfavorable.
D)$520 unfavorable.

Question

Quizplus · Accepted Answer

The materials price variance is calculated as follows:Standard price per square yard x (Actual quantity used - Standard quantity allowed)= $2.45 x (5,200 - 5,000)= $2.45 x 200= $490 favorable

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