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19 July, 02:52

Imrie Corporation makes a product that uses a material with the quantity standard of 9.5 grams perunit of output and the price standard of $5.00 per gram. In January the company produced 2,900units using 26,940 grams of the direct material. During the month the company purchased 28,900grams of the direct material at $4.90 per gram. The direct materials purchases variance is computedwhen the materials are purchased. The materials quantity variance for January is:A. $2,989 FB. $3,050 FC. $2,989 UD. $3,050 UThe materials price variance for January is:A. $2,755 UB. $2,890 FC. $2,890 UD. $2,755 F

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  1. 19 July, 06:20
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    Option (B) is correct.

    Explanation:

    Given that,

    Standard Price = $5

    Direct material (Actual Price) = $4.9

    Actual Quantity Purchased = 28,900

    Materials price variance for January:

    = (Standard Price - Actual Price) * Actual Quantity Purchased

    = ($5 - $4.9) * 28,900

    = $2,890 (Favorable)

    Therefore, the materials price variance for January is $2,890 Favorable.
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