USA: +1 725-224-8795 
Sign in
The following materials standards have been established for a particular product: Standard quantity per unit of output 4.2 meters Standard price $ 18.40 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased 7,200 meters Actual cost of materials purchased $ 138,600 Actual materials used in production 6,700 meters Actual output 1,550 units
What is the materials price variance for the month?
Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: The following materials standards have been established for a particular product: Standard quantity per unit of output 4.2 meters Standard pr…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
$3,658 U
$7,700 U
$11,770 U
$6,120 U
Expert Answer
| STANDARD COST FOR MATERIAL | |||
| Std. Quantity Per Unit | Standard Price | Standard Cost Per Unit | |
| 4.2 | 18.4 | 77.28 | |
| Actual Rate per unit = Actual Cost / Actual Material Purchased | |||
| Actual Rate per unit = $138,600 / 7200 | |||
| Actual Rate per unit = $ 19.25 Per Meter | |||
| Material price Variance = (Standard Price – Actual Price) * Actual Quantity | |||
| Standard Prcie = $18.40 Per Meter | |||
| Actual Prcie = $19.25 Per Meter | |||
| Actual Quantity Purchased = 7200 Meters | |||
| Material price Variance = ($18.40 – $19.25) * 7200 Meters | |||
| Material price Variance = $ 0.85 * 7200 Meters | |||
| Material price Variance = $ 6120 (Unfavorable) | |||
| Answer = Option 4= Material Price variance = $ 6120 (Unfavorable) | |||
