A manufacturer of radios purchases components from subcontractors for assembly into complete radios.  Each radio requires three units each of Part X, which has a standard cost of $2.90 per unit.  During June, the company had the following experience with respect to Part X:                                                                                                                Units Purchases ($36,000)                                                                           12,000 Consumed in manufacturing                                                               10,000 Radios manufactured                                                                            3,000 During June, the company incurred a materials purchase-price variance of  Group of answer choices $1,200 unfavorable $900 unfavorable $900 favorable $1,200 favorable

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A manufacturer of radios purchases components from subcontractors for assembly into complete radios.  Each radio requires three units each of Part X, which has a standard cost of $2.90 per unit.  During June, the company had the following experience with respect to Part X:

                                                                                                               Units

Purchases ($36,000)                                                                           12,000

Consumed in manufacturing                                                               10,000

Radios manufactured                                                                            3,000

During June, the company incurred a materials purchase-price variance of 

Group of answer choices
$1,200 unfavorable
$900 unfavorable
$900 favorable
$1,200 favorable
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