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) – 29,750 (F) = - 5750 or 5750 (A)

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