Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for August is:
A) $5,440 Favorable
B) $6,320 Favorable
C) $5,440 Unfavorable
D) $6,320 Unfavorable

Question

Handerson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in August.
 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for August is:
A) $5,440 Favorable 
B) $6,320 Favorable 
C) $5,440 Unfavorable 
D) $6,320 Unfavorable

Quizplus · Accepted Answer

The Answer of Handerson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in August.
 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for August is:
A) $5,440 Favorable 
B) $6,320 Favorable 
C) $5,440 Unfavorable 
D) $6,320 Unfavorable

Handerson Corporation Makes a Product with the Following Standard Costs