Standard Data

Actual Data

materials

10

lbs @

$4

per lb

Produced

4,500

units

Labor

3

hours @

$21

per hour

Materials purchased

55,000

lbs. for

$227,000

budgeted production

2,575

units

materials used

27,000

lbs

Labor worked

11,000

hours costing

$220,000

This is the standard costing system data for 2016.

Determine the amount of the materials price variance. Is the variance favorable or unfavorable?

Question 4 options:

	Favorable
	Unfavorable
	There is no price variance.