Question

Kramer Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Kramer Inc.'s total materials variance is Group of answer choices

Answer 1

$1,200U

Step-by-step explanation:

Calculation to determine what the total materials variance is

Using this formula

Total materials variance = [(AQ × AP) - (AQ × SP)]

Where;

AQ represent Actual quantity = 6,000 pounds

AP represent Actual price = $2.20

SP represent Standard price = $2

Let plug in the formula

Total materials variance = [(6,000 × $2.20) - (6,000 × $2)]

Total materials variance = [($13,200) - ($12,000)]

Total materials variance = $1,200U

Therefore the total materials variance is $1,200U