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Delicious77 [7]
2 years ago
15

Imrie Corporation makes a product that uses a material with the quantity standard of 9.5 grams perunit of output and the price s

tandard of $5.00 per gram. In January the company produced 2,900units using 26,940 grams of the direct material. During the month the company purchased 28,900grams of the direct material at $4.90 per gram. The direct materials purchases variance is computedwhen the materials are purchased.The materials quantity variance for January is:A. $2,989 FB. $3,050 FC. $2,989 UD. $3,050 UThe materials price variance for January is:A. $2,755 UB. $2,890 FC. $2,890 UD. $2,755 F
Business
1 answer:
SashulF [63]2 years ago
6 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Standard Price = $5

Direct material (Actual Price) = $4.9

Actual Quantity Purchased = 28,900  

Materials price variance for January:

= (Standard Price - Actual Price) × Actual Quantity Purchased

= ($5 - $4.9) × 28,900

= $2,890 (Favorable)

Therefore, the materials price variance for January is $2,890 Favorable.

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