A product is expected to use 4 kg of material at cost of $25.00/kg. Actual consumption and cost were 3.95 kg of material per unit at a cost of $25.60/kg. The result was:

Question 17Answer

a.

A favourable materials price variance and unfavourable materials quantity variance

b.

Both material price and quantity variances were favourable

c.

Both material price and quantity variances were unfavorable

d.

An unfavourable materials price variance and a favorable materials quantity variance