View the step-by-step solution to:

# 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

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

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents