Last month 75,000 pounds of direct material were purchased and 71,000 pounds were used.If the actual purchase price per pound was $0.50 more than the standard purchase price per pound,then the materials price variance was:
A)$2,000 F
B)$37,500 F
C)$37,500 U
D)$35,500 U

Question

Quizplus · Accepted Answer

Materials price variance = (AQ F1F1F1S1F1F1F10 AP)- (AQ F1F1F1S1F1F1F10 SP)= AQ (AP - SP)
= 75,000 pounds F1F1F1S1F1F1F10 $0.50 per pound = $37,500 U

Last Month 75,000 Pounds of Direct Material Were Purchased and 71,000