ABC Incorporation provides the following information for November 2018
Budgeted Production = 200 units
Standard consumption of raw materials = 2 kg per unit
Standard cost of raw material = $6 per kg
Actual Production = 250 units
Material A was purchased at $8 per kg and the consumption was 1.8 kg per unit of
production. Calculate the material price variance.
a. $900 Favorable
b. $900 Unfavorable
c. $600 Favorable
d. $600 Unfavorable
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Answer:
answer
is (b) $900
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