Bumgardner Inc. has provided the following data concerning one of the products in its standard cost system.
The company has reported the following actual results for the product for April:

-The materials price variance for April is:
A) $1,860 U
B) $1,860 F
C) $1,560 U
D) $1,560 F

Question

Bumgardner Inc. has provided the following data concerning one of the products in its standard cost system.
  The company has reported the following actual results for the product for April:
 
-The materials price variance for April is:
A) $1,860 U 
B) $1,860 F 
C) $1,560 U 
D) $1,560 F

Quizplus · Accepted Answer

Materials price variance = AQ × (AP − SP)
= 18,600 liters × ($1.10 per liter − $1.00 per liter)
= 18,600 liters × ($0.10 per liter)
= $1,860 U