What is the materials price variance


The Alpha Company produces toys for national distribution. Standards for a particular toy are:


Materials: 12 ounces per unit at 56¢ per ounce.
Labor: 2 hours per unit at $2.75 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows:
Materials: 14,000 ounces were purchased and used at a total cost of $7,140.
Labor: 2,500 hours worked at a total cost of $8,000.


what is the materials price variance ?

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Accounting Basics: What is the materials price variance
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