Question: Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, the company purchased 12,000 units of the part for a total of $18,000. Also during May, the company manufactured 3,000 radios, using 10,000 units of part XBEZ52.
Reference: 10-11
During May, the materials price variance for part XBEZ52 was:
- $600 U
- $450 F
- $450 U
- $600 F