Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February.
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 February is:
A) $77,300 Unfavorable
B) $77,300 Favorable
C) $4,900 Favorable
D) $4,900 Unfavorable

Question

Majer Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in February.
 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 February is:
A) $77,300 Unfavorable 
B) $77,300 Favorable 
C) $4,900 Favorable 
D) $4,900 Unfavorable

Quizplus · Accepted Answer

The Answer of Majer Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in February.
 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 February is:
A) $77,300 Unfavorable 
B) $77,300 Favorable 
C) $4,900 Favorable 
D) $4,900 Unfavorable

Majer Corporation Makes a Product with the Following Standard Costs