The standard direct material cost to produce one widget is four meters of widget line (material) at $3.00 per meter.

488 views
0

The standard direct material cost to produce one widget is four meters of widget line (material) at $3.00 per meter.  Durig May 2016, 6,000 meters of line (material) costing $17,500 were purchased and used to produce 1,500 units of widgets.  What was the material price variance for May 2016?

a. $200 Favorable

b. $500 Unfavorable

c. $800 Unfavorable

d.  $500 Favorable

0
  1.  $500 Favorable

Working notes for the above answer is as under

material price variance

=( AQ*AP) – (AQ*SP)

now we put the figures in to the formulla as follow

=17500 – (6000*3)

=17500- 18000

=500 F

You are viewing 1 out of 0 answers, click here to view all answers.

Contact us today

Ask for our academic services

Copyright SmartStudyHelp 2016. All Rights Reserved