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(- Secure : https://bbnsuok.edu/webapps/assessment/take/launchJsp?course-assessment,id=.10: Question Completion Status: QUESTION 1 The Ketchum Company has established standards as follows: Direct material.. 3 pounds@$4/pound $12 per unit 2 hours @ $8/hour $16 per unit Actual production figures for the past year were as follows: 500 1,600 pounds $12,300 Units produced. Direct material used.. Direct material purchased (3,000 pounds Direct labor cost (950 hours Variable overhead cost incurred The materials price variance is: A. $160 U $7,790 $4,655 B, $6,300 U C. $300 U "D. $150 U E. None of the above Click Save and Subaut to save and subenit. Click Save All Answers to sare all answers PrtScn F2 F3 F4 F6

Explanation / Answer

SP = Standard price of material = 4 per pound

AP = Actual price of material = 12300 / 3000 pounds = 4.1 per pound

Material Price variance = Actual quantity used ( SP - AP) = 1600 ( 4 - 4.10) = 160 Unfavorable

Select Option - A ............. 160 U

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