New Click Here to Play Diwali Spin and Win and Get Huge Discounts

    Register

    Question

    Calculate the Material Price variance, if Material Cost variance is 24000 (F) and the Material Usage variance is 29750 (F).

    A 5750 (A) Correct Answer Incorrect Answer
    B 5750 (F) Correct Answer Incorrect Answer
    C 53750 (A) Correct Answer Incorrect Answer
    D 53750 (F) Correct Answer Incorrect Answer
    E Cannot be calculated Correct Answer Incorrect Answer

    Solution

    Material Cost Variance = Material usage variance + Material Price Variance 24,000(F) = 29,750(F) + Material Price Variance Material Price Variance = 24000 (F) – 29,750 (F) = - 5750 or 5750 (A)

    Practice Next