Reference: 11-08
the Following Materials Standards Have Been Established for a Particular

Multiple Choice

Reference: 11-08
The following materials standards have been established for a particular product: $$\begin{array}{l}\begin{array} { | l | l | l | } \hline \text { Standard quantity per unit of output } & 1.9 & \text { grams } \\\hline \text { Standard price } & \$ 18.00 & \text { per gram } \\\hline\end{array}\\\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | l | l | } \hline \text { Actual materials purchased } & 5,800 & \text { grams } \\\hline \text { Actual cost of materials purchased } & \$ 108,460 & \\\hline \text { Actual materials used in production } & 5,200 & \text { grams } \\\hline \text { Actual output } & 2,700 & \text { units } \\\hline\end{array}\end{array}$$
-Last month 75,000 grams of direct material were purchased and 70,000 grams were used. If the actual purchase price per gram was $0.25 more than the standard purchase price per gram, then the material price variance was?

A) $17,500 F
B) $18,750 U
C) $17,500 U
D) $18,750 F