Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, the company purchased 12,000 units of the part for a total of $18,000. Also during May, the company manufactured 3,000 radios, using 10,000 units of part XBEZ52. The direct materials purchases variance is computed when the materials are purchased.
-During May, the materials price variance for part XBEZ52 was:
A)$450 U
B)$450 F
C)$600 F
D)$600 U

Question

Quizplus · Accepted Answer

Since the materials price variance is given as $600 U (unfavorable), it means the actual cost of materials used to produce the part exceeded the expected cost.