How to explain the material price variance


A standard cost card says that a product is suppose to use 4lb of material B per finished unit and that the standard price of material B is $4.50 per lb. the budgeted production was 1000 units, but 1040 where made. A total of 4100lb of material B where used in production and the inventory of this material was reduced by 300lb. the total cost of material purchased was $14400. What is the material price variance? Show all work.

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Accounting Basics: How to explain the material price variance
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