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      Question

      Calculate the Material Price variance, if Material Cost

      variance is 24000 (F) and the Material Usage variance is 29750 (F).
      A 5750 (A) Correct Answer Incorrect Answer
      B 5750 (F) Correct Answer Incorrect Answer
      C 53750 (A) Correct Answer Incorrect Answer
      D 53750 (F) Correct Answer Incorrect Answer
      E Cannot be calculated Correct Answer Incorrect Answer

      Solution

      Material Cost Variance = Material usage variance + Material Price Variance 24,000(F) = 29,750(F) + Material Price Variance Material Price Variance = 24000 (F) โ€“ 29,750 (F) = - 5750 or 5750 (A)

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