Problem:
The following materials standards have been established for a particular raw material used in the company's sole product:
Standard quantity per unit of output 0.1 pound
Standard price $18.20 per pound
The following data pertain to operations for the last month:
Actual materials purchased 5,700 pounds
Actual cost of materials purchased $100,320
Actual materials used in production 5,600 pounds
Actual output 55,800 units
What is the materials price variance for the month?
- $1,820 U
- $352 U
- $1,760 U
- $3,420 F