What entry to the materials price variance account


The Dexon Company makes and sells a single product called a Mip and employs a standard costing system. The following standards have been established for one unit of Mip:


Standard Quantity or Hours Standard Cost per Mip
Direct materials 6 board feet $9.00
Direct labor 0.8 hours $9.60
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account?

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Accounting Basics: What entry to the materials price variance account
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