CLO Company established a standard direct material cost of Php30 per finished unit for its main product. The standard is calculated using direct material of 6 pounds and a standard rate of Php2.50 per pound.

For the month of July, CLO expected to produce 48,000 units. During the month, Leo purchased and used 260,000 pounds of material and produced 46,500 finished units. The actual price paid per pound was Php2.70.

What was the material price variance for the month of July?

Group of answer choices

Php 47,500 F

Php 52,000 F

Php 47,500 UF

Php 52,000 UF

Answer rating: 100% (QA)

Answer Correct Option is 52000 UF ... View the full answer