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    askme42's Avatar
    askme42 Posts: 18, Reputation: 1
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    #1

    Jan 20, 2009, 01:53 PM
    Calculate Materials Price Variance
    Company X has a price standard of $2 per lbs.

    5,000 lbs was bought at $2.20 per lbs.

    The actual quantity used was 5,000 lbs, although the standard quantity for output was 4,500 lbs

    What is Company X's material price variance?
    askme42's Avatar
    askme42 Posts: 18, Reputation: 1
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    #2

    Jan 20, 2009, 03:27 PM
    This is my answer

    (2.00-2.20) X 5000 = $1,000 U

    please advise if incorrect
    dil_guy's Avatar
    dil_guy Posts: 1, Reputation: 1
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    #3

    Mar 4, 2010, 10:36 AM
    Fourmula

    (SP-AP) X AQ
    (2-2.20) X 4500 = (900)
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Mar 5, 2010, 01:35 AM

    The thread is a year old so I don't think OP cares anymore.

    OP's answer was correct to begin with. Yours is incorrect because 4500 isn't the actual quantity - 5000 is.
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