The following information relates to product A: QuantityUnit PriceCost Per UnitMaterial (kg) 5£15£75Labour (hours) 4£20£80 Budgeted production1250Units Actual production1000Units Actual inputs were as follows: Material 6000Kgs£100,000 Labour 3800hours£70,000A0. What is Material Price Variance?Choose one from the following: A.£10,000Favourable B.£10,000Unfavourable C.£15,000Favourable D.£15,000Unfavourable

In budgeting, variance analysis is the examination of variations between actual and projected or…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information relates to product A:

		Quantity	Unit Price	Cost Per Unit
Material (kg)		5	£15	£75
Labour (hours)	4	£20	£80

Budgeted production	1250	Units
Actual production	1000	Units

Actual inputs were as follows:
Material		6000	Kgs	£100,000
Labour		3800	hours	£70,000

A0. What is Material Price Variance?

Choose one from the following:

£10,000

Favourable

£10,000

Unfavourable

£15,000

Favourable

£15,000

Unfavourable

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