Question - You have been given the following information in respect to materials and labor:
Standard unit price of materials £9.00
Actual unit price of materials £8.68
Standard quantity of material for actual production (units) 3,300
Actual quantity of materials purchased and used (units) 3,600
Standard direct labour rate £28.00
Actual direct labour rate £24.40
Standard direct labour hours 24,000
Direct labour usage variance £28,280 U = unfavourable or adverse
a) Calculate the material purchase price variance, which is (actual price - standard price) × actual quantity of materials used?