Question

Bramble Co. produces wooden boxes. The company’s standards per box require 6 boards, each costing $10 per board, and half of an hour of direct labour. The standard labour rate is $15 per hour. In August, Bramble Co. purchased 12060 boards for a total cost of $123300. It used 11470 boards to manufacture 1950 boxes. Total labour hours were 940 hours, and total labour costs were $16500. What was the materials purchase price variance for August?

$2700 F

$2700 U

$8600 F

$8600 U

Answer 1