The following materials standards have been established for a particular product: Standard quantity per unit of output …………….. 6.8 grams Standard price ……………………………………. $14.40 per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased ………………….. 4,400 meters Actual cost of materials purchases ………….. $60,500 Actual materials used in production …………. 3,800 meters Actual output ……………………………….. 400 units What is the materials price variance for the month? $2,860 F $14,850 U $8,250 U $8,640 U

The following materials standards have been established for a particular product:
Standard quantity per unit of output ……………..  6.8 grams
Standard price ……………………………………. $14.40 per gram
 

The following data pertain to operations concerning the product for the last month:
Actual materials purchased ………………….. 4,400  meters
Actual cost of materials purchases  ………….. $60,500
Actual materials used in production …………. 3,800 meters
Actual output ……………………………….. 400 units
 

What is the materials price variance for the month?

	$2,860 F
	$14,850 U
	$8,250 U
	$8,640 U

Answer
$2,860 F