Homework SourseCasivant Corporation makes a product that uses a material wi
Casivant Corporation makes a product that uses a material with the following direct material standards
| Standard quantity | 3.8 | pounds per unit | |
| Standard price | $ | 4.00 | per pound |
The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased. | |||
| The materials price variance for November is: |
Solution
Answer
the materials price variance = ( actual quantity * actual price ) - ( actual quantity * standard price )
= 117040 - ( 28710 * 4 )
= 117040 - 114840
= 2200
the material price variance for november = 2200
