Introduction of materials price variance


Veggie Corp. uses a standard cost system. In May, Veggie purchased and used 17,500 pounds of materials at a cost of $70,000. The materials usage variance was $2,500 unfavorable and the standard materials allowed for May production was 17,000 pounds. What was the materials price variance for May?

a. $17,500 favorable

b. $17,500 unfavorable

c. $15,000 favorable

d. $15,000 unfavorable

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Accounting Basics: Introduction of materials price variance
Reference No:- TGS041612

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