Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials price variance for the period is:

Question

Beakins Corporation produces a single product.The standard cost card for the product follows:  During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below:  The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials price variance for the period is:

Quizplus · Accepted Answer

AQ × AP = $28, 500
Materials price variance = (AQ × AP)- (AQ × SP)
= ($28, 500)- (6, 000 yards × $5 per yard)
= $28, 500 - $30, 000
= $1, 500 F

Beakins Corporation Produces a Single Product