Determine the materials purchase price variance

Assignment Help Accounting Basics

Reference no: EM132702427

Question - Materials price usage variance vs. material purchase price variance

The standard cost of direct material used by Fox Company for its product is P30 per unit. During the month, 4,500 units of materials were purchased at a total cost of P 121,500 while only 4,000 units of materials were used during the month; however, the standard quantity allowed for actual production is 3,800 units.

Required - Determine the following:

1. Total materials variance

2. Materials quantity variance

3. Materials price usage variance

4. Materials purchase price variance

Reference no: EM132702427

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