Question
Calculate the Material Price variance, if Material Cost
variance is 24000 (F) and the Material Usage variance is 29750 (F).Solution
Material Cost Variance = Material usage variance + Material Price Variance 24,000(F) = 29,750(F) + Material Price Variance Material Price Variance = 24000 (F) – 29,750 (F) = - 5750 or 5750 (A)
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