Timothy Company has the following information available for October when 3,000 u

Question

Timothy Company has the following information available for October when 3,000 units are produced:

Standard materials cost per unit

3.0 pounds at $4.10 per pound

Actual data for October:

Materials purchased

12,300 pounds at $4.20 per pound.

Materials used

11,750 pounds

The materials price variance is:

Timothy Company has the following information available for October when 3,000 units are produced:

Standard materials cost per unit

3.0 pounds at $4.10 per pound

Actual data for October:

Materials purchased

12,300 pounds at $4.20 per pound.

Materials used

11,750 pounds

The materials price variance is:

Explanation / Answer

Material price variance can be calculated as using formula

Actual quantity used ( Standard price - actual price)

= 11750 (4.10 - 4.20)

11750 x - 0.10, = 1175 Adverse

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