Use the following information to answer the next question(s):
The standard cost sheet for one of the Vitton Company's products is presented below.
*Rate based on expected activity of 12,000 hours
The following results for last year were recorded.

-The materials price variance is
A) $7,800 unfavourable.
B) $7,800 favourable.
C) $8,400 unfavourable.
D) $8,400 favourable.

Question

Use the following information to answer the next question(s):
The standard cost sheet for one of the Vitton Company's products is presented below.
  *Rate based on expected activity of 12,000 hours
The following results for last year were recorded.
 
-The materials price variance is
A) $7,800 unfavourable. 
B) $7,800 favourable. 
C) $8,400 unfavourable. 
D) $8,400 favourable.

Quizplus · Accepted Answer

The materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. The question indicates a variance of $7,800 unfavourable, meaning the actual cost was higher than the standard cost.

Use the Following Information to Answer the Next Question(s)