Woodside Company manufactures tables with vinyl tops.The standard material cost for the vinyl used per Style-R table is $7.20 based on 8 square feet of vinyl at a cost of $.90 per square foot.A production run of 1,000 tables in January resulted in usage of 8,300 square feet of vinyl at a cost of $.80 per square foot,a total cost of $7,055.If the materials price variance was recorded when the material was issued to production,that variance was:

Question

Quizplus · Accepted Answer

The materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. Here, the actual price is $0.80, the standard price is $0.90, and the actual quantity is 8,300 square feet. The variance is ($0.80 - $0.90) x 8,300 = -$0.10 x 8,300 = $830 favorable.

Woodside Company Manufactures Tables with Vinyl Tops