Fraize Corporation makes a product that uses a material with the quantity standa

Question

Fraize Corporation makes a product that uses a material with the quantity standard of 9.5 kilos per unit of output and the price standard of $4.00 per kilo. In July the company produced 7,000 units using 68,850 kilos of the direct material. During the month the company purchased 73,600 kilos of the direct material at $3.70 per kilo. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for July is: A) $22,080 U B) $19,950 U C) $22,080 F D) $19,950 F

Explanation / Answer

C

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