What was the material price variance for period 3?

Refer to the exhibit.

Xell Ltd uses a standard costing system and therefore values all inventory at standard cost.

During period 3 the price paid for material ‘A’ was £6 per kg less than the standard price.

The following information for material ‘A’ relates to period 3:

What was the material price variance for period 3?
A . £6 Favourable
B . £60 Favourable
C . £1500 Favourable
D . £1800 Favourable

View Answer

Answer: D