Lumberman Manufacturing Provided the Following Information About Its Standard Costing

Essay

Lumberman Manufacturing provided the following information about its standard costing system for 2016:
Standard Data Actual Data
Materials 10 lbs. @ $4 per lbs. Produced 4,000 units
Labor 3 hrs. @ $21 per hr. Materials purchased 50,000 lbs. for $215,000
Budgeted production 3,500 units Materials used 41,000 lbs.
Labor worked 11,000 hrs. costing $220,000
Instructions
Determine the amount of the materials price variance. By how much will the materials price variances differ if the price variance is determined at the time of production?