Leonesio Corporation makes a product that uses a material with the following standards: Standard quantity 8.2 kilos per unitStandard price$4.00per kiloStandard cost$32.80per unitThe company budgeted for production of 3,100 units in August, but actual production was 3,200 units. The company used 27,600 kilos of direct material to produce this output. The company purchased 29,000 kilos of the direct material at a total cost of $118,900. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for August is:

A. $2,624 U
B. $2,900 F
C. $2,900 U
D. $2,624 F


Answer: C

Business

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