Wednesday, 24 June 2020

Calculate the Company's materials price variance

A Company has a materials price standard of $2.50 per kilogram. Four thousand kilograms of materials were purchased at $2.40 a kilogram.
The actual quantity of materials used was 3,500 kilograms, although the standard quantity allowed for the output was 3,400 kilograms.
Required
a. Calculate the Company's materials price variance
b. Calculate the Company's materials quantity variance
c. Calculate the Company's total materials variance 

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