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) $3,136 Favorable
B) $3,260 Favorable
C) $3,136 Unfavorable
D) $3,260 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) $3,136 Favorable 
B) $3,260 Favorable 
C) $3,136 Unfavorable 
D) $3,260 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) $3,136 Favorable 
B) $3,260 Favorable 
C) $3,136 Unfavorable 
D) $3,260 Unfavorable

Majer Corporation Makes a Product with the Following Standard Costs