Omega Electronics manufactures a product where each unit requires 0.5 pounds of direct materials at $3 per pound. In producing 40,000 units, the company used 20,800 pounds of material at $3.10 per pound. What is the materials price variance?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...
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Financial Accounting

Omega Electronics manufactures a product where each unit requires
0.5 pounds of direct materials at $3 per pound. In producing 40,000
units, the company used 20,800 pounds of material at $3.10 per
pound. What is the materials price variance?
Transcribed Image Text:Omega Electronics manufactures a product where each unit requires 0.5 pounds of direct materials at $3 per pound. In producing 40,000 units, the company used 20,800 pounds of material at $3.10 per pound. What is the materials price variance?
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