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The standard cost card for a product shows that the product should use 4 kilograms of material B per finished unit and that the standard price of...

The standard cost card for a product shows that the product should use 4 kilograms of material B per finished unit and that the standard price of material B is $4.50 per kilogram. During April, when the budgeted production level was 1,000 units, 1,040 units were actually made. A total of 4,100 kilograms of material B were used in production and the inventories of material B were reduced by 300 kilograms during April. The total cos of material B purchased during April was $14,000. The material variances for material B during April were:
Material Price Variance Material quantity Variance
a $2,700F $1,620F
b $2,700F $270F
c $4,050F $270F
d $4,050F $1,620F

A. Option A
B. Option B
C. Option C
D. Option D

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8406433 - Variance analysis.docx

Formula for Price Variance – {(Actual quantity purchased × Actual price) − (Actual quantity
purchased × Standard price)}
Thus, Price Variance = {14400 – (3800*4.5)} = 2700 Favorable.
Note...

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