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All Urban Company Produces a Product Requiring 4 Pounds of Material

question 161

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All Urban Company produces a product requiring 4 pounds of material costing $3.50 per pound. During December All Urban purchased 4200 pounds of material for $14112 and used the material to produce 500 products. What was the materials price variance for December?

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Definitions:

Pressure Regulator Valve

A valve that automatically cuts off the flow of a liquid or gas at a certain pressure to maintain the desired pressure level in a system.

Friction Discs

The driven discs in a clutch pack. Most heavy-duty truck chassis use double friction discs. These would be clamped between the clutch pressure plate/intermediate plate/flywheel when the clutch was engaged.

Grooving

The process of cutting narrow slots or grooves on a surface, often for the purpose of installing something or to enhance the surface's properties.

Automatic Transmission

A type of transmission in vehicles that automatically changes gear ratios as the vehicle moves, requiring no driver intervention to change gears manually.

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