Biery Corporation Makes a Product with the Following Standard Costs

question 327

Multiple Choice

Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for April is:

• A)$1,066 U
• B)$1,200 U
• C)$1,200 F
• D)$1,066 F

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