### Materials Standards and Variance Analysis#### Established Materials Standards for a Product:- **Standard quantity per unit of output:** 4.3 meters- **Standard price:** $18.60 per meter#### Operational Data for the Last Month:- **Actual materials purchased:** 7,100 meters- **Actual cost of materials purchased:** $138,805- **Actual materials used in production:** 6,600 meters- **Actual output:** 1,500 units#### Task:Calculate the materials price variance for the month.#### Multiple Choice Options:- $2,933 U- $6,745 U- $7,600 U- $12,345 U#### Explanation:The price variance is determined by comparing the actual cost of materials purchased with the expected cost based on the standard price.U (Unfavorable) indicates the actual costs were higher than expected.

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Description: ### Materials Standards and Variance Analysis#### Established Materials Standards for a Product:- **Standard quantity per unit of output:** 4.3 meters- **Standard price:** $18.60 per meter#### Operational Data for the Last Month:- **Actual materials

Material price variance = (Actual price per meter - Standard price per meter)*Actual quantity…

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The following materials standards have been established for a particular product: Standard quantity per unit of output 4.3 meters $18.60 per meter Standard price The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials 7,100 meters $138,805 purchased Actual materials used in 6,600 meters production Actual output 1,500 units What is the materials price variance for the month? Multiple Choice $2,933 U • $6,745 U $7,600 U $12,345 U

The following materials standards have been established for a particular product: Standard quantity per unit of output 4.3 meters $18.60 per meter Standard price The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials 7,100 meters $138,805 purchased Actual materials used in 6,600 meters production Actual output 1,500 units What is the materials price variance for the month? Multiple Choice $2,933 U • $6,745 U $7,600 U $12,345 U

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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