What kind of entry to the materials price variance account


The Odle Company makes and sells a single product called a Kitt. Odle uses a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor-hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred:

• Purchased 17,000 pounds of material at a total cost of $190,000.

• Used 15,000 pounds of material to produce 2,400 Kitts.

• Used 1,900 hours of direct labor time at a total cost of $38,000. To record the purchase of direct materials, the general ledger would include what kind of entry to the Materials Price Variance Account?

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Accounting Basics: What kind of entry to the materials price variance account
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