Gilder Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. 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 June is:

Question

Gilder Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in June.  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 June is:

Quizplus · Accepted Answer

AQ × AP = $260, 190
Materials price variance = (AQ × AP)- (AQ × SP)
= ($260, 190)- (44, 100 grams × $6.00 per gram)
= $260, 190 - $264, 600
= $4, 410 F

Gilder Corporation Makes a Product with the Following Standard Costs