Asked by
Gianna Catapano
on Nov 13, 2024Verified
Denmark Corporation's variance report for the purchasing department reports 1000 units of material A purchased and 2400 units of material B purchased. It also reports standard prices of $2 for Material A and $3 for Material B. Actual prices reported are $2.10 for Material A and $2.80 for Material B. Denmark should report a total price variance of
A) $380 F.
B) $340 F.
C) $340 U.
D) $380 U.
Price Variance
The difference between the actual cost of a good or service and its planned or budgeted cost.
Material A
Material A most likely refers to a specific type of raw material used in production processes, identifiable by a unique characteristic or designation.
- Compute the sum total of overhead variance, discrepancies in labor rate and volume, and discrepancies in material rate and volume.
Verified Answer
NM
Learning Objectives
- Compute the sum total of overhead variance, discrepancies in labor rate and volume, and discrepancies in material rate and volume.