Question

Bramble Corp. has a materials price standard of $2.00 per pound. 4600 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 4600 pounds, although the standard quantity allowed for the output was 4300 pounds. Bramble Corp.'s materials price variance is

Answer 1

$600 Unfavorable

Step-by-step explanation:

Calculation to determine what Bramble Corp.'s materials price variance is

Using this formula

Materials price variance=(Standard quantity allowed-Actual quantity)*Materials price standard

Let plug in the formula

Material Price variance = (4300 - 4600)*$2 = Material Price variance=-300*$2

Material Price variance= $600 Unfavorable

Therefore Bramble Corp.'s materials price variance is $600 Unfavorable