Zinkyl Corporation produces high-quality leather boots.The company has a standard cost system and has set the following standards for materials and labor:
During the year, Zinkyl produced 100 boots.Actual leather purchased was 1,500 strips, at $12 per strip.There were no beginning or ending inventories of leather.Actual direct labor was 1,000 hours at $10 per hour.

Compute the materials price variance.
A) $6,000 F
B) $7,300 U
C) $12,000 F
D) $16,800 U

Question

Zinkyl Corporation produces high-quality leather boots.The company has a standard cost system and has set the following standards for materials and labor:
 During the year, Zinkyl produced 100 boots.Actual leather purchased was 1,500 strips, at $12 per strip.There were no beginning or ending inventories of leather.Actual direct labor was 1,000 hours at $10 per hour.

Compute the materials price variance.
A) $6,000 F 
B) $7,300 U 
C) $12,000 F 
D) $16,800 U

Quizplus · Accepted Answer

Materials Price Variance = (Actual Price - Standard Price) × Actual Quantity
 11ea8a4c_496e_3c58_a0e6_1926970576de_TB5550_00

Zinkyl Corporation Produces High-Quality Leather Boots