Johnny Corporation Makes a Product That Uses a Material with the Following

Multiple Choice

Johnny Corporation makes a product that uses a material with the following standards:

The company budgeted for production of 9,500 units in April, but actual production was 9,600 units. The company used 85,400 kilos of direct material to produce this output. The company purchased 91,900 kilos of the direct material at $1.10 per kilo.

The direct materials purchases variance is computed when the materials are purchased.

-The materials price variance for April is:

A) $7,872 F
B) $9,190 U
C) $9,190 F
D) $7,872 U