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Materials purchase price variance?

Combo Company uses a standard cost system. Information for raw materials for Product #4 for the month of June are as follows: Standard price per pound of raw materials $1.6 Actual purchase price per pound of raw materials $1.55 Actual quantity of raw materials purchased2,0 pounds Actual quantity of raw materials used1,900 pounds Standard quantity allowed for actual production1,800 pounds What is the materials purchase price variance? a. $90 favorable b. $90 unfavorable c. $100 favorable d. $100 unfavorable

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Question ajoutée par Anayatullah Tahir , Finance Manager , Etqan Projects
Date de publication: 2014/03/24
Mark John Domingo
par Mark John Domingo , General Accountant , Palma Holding

C

Rodolfo P. Monforte Jr.
par Rodolfo P. Monforte Jr. , PURCHASING DIRECTOR , The Maritime Training Center of the Philippines

letter d. unfavorable (likely to cause problem or difficulties)

Ramamoorthy Hariharan Iyer
par Ramamoorthy Hariharan Iyer , Manager Operations , Expeditors International India Private Limited

D

= Diff in Price (.5*2*100)

Hence $100 excess purchase Unfavourable to the company

Aziz ur Rehman ur Rehman
par Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

When Material price variance recorded at the time of purchase then

Material Price Variances      (UF)        100  =2000 units x (1.6-1.55)

 

When Material price variance recorded at the time of usage then

Material Price Variances        (UF)       90  =1800 units x (1.6-1.55)

 

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