40000 lower 50000 higher O 100000 lower QUESTION 25 4 point

?$40,000 lower $50,000 higher O $100,000 lower QUESTION 25 4 point Cuda Corporation makes a Standard quantity Standard price$6.00/per pound Standard cost 6.5 pounds per unit $39.00/per unit The company budgeted for production of 3 company used 23,050 pounds of direct material to produce this output. The company purchased 26,000 pounds of the direct material at a total cost of $158,600. The direct materials purchases variance is computed when the materials are 500 units in November, but actual production was 3,300 units. The . purchased. The materials price variance for November is O $2,145 U O$2,145 $2,600 u $2,600F

Solution

Material Price Variance = (Standard Price-Actual Price)*Actual Quantity

=(6-6.1)*26000 = 2,600 Unfavourable \\

i.e. c

Actual Cost = $158,600

Actual Quantity = 26,000 pounds

Actual rate = 6.1