The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month?

Question

The following materials standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the materials price variance for the month?

Quizplus · Accepted Answer

Materials price variance = (AQ × AP)- (AQ × SP)
= $141, 375 - (7, 500 grams × $19.15 per gram)
= $141, 375 - $143, 625
= $2, 250 F

The Following Materials Standards Have Been Established for a Particular