What is the materials purchase price variance


Matt Company uses a standard cost system. Information for raw materials for Product RBI for the month of October follows:


Standard price per pound of raw materials = $1.60
Actual purchase price per pound of raw materials = $1.55
Actual quantity of raw materials purchased = 2,000 pounds
Actual quantity of raw material used = 1,900 pounds
Standard quantity allowed for actual production = 1,800 pounds

What is the materials purchase price variance?

 

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Accounting Basics: What is the materials purchase price variance
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