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The following materials standards have been established for a particular product:
| |
| Standard quantity per unit of output | | 4.4 | pounds |
| Standard price | $ | 13.20 | per pound |
| |
The following data pertain to operations concerning the product for the last month:
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| Actual materials purchased | | 4,800 | pounds |
| Actual cost of materials purchased | $ | 62,880 | |
| Actual materials used in production | | 4,800 | pounds |
| Actual output | | 700 | units |
| |
The direct materials purchases variance is computed when the materials are purchased.
What is the materials price variance for the month?
Multiple Choice
$480 U
$480 F
$308 U
$308 F
Answer & Explanation
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