The following material standards have been established for a

The following material standards have been established for a particular product Standard quantity per unit of output....... 1.9 grams standard price.............................. dolar18.00 per grams

Solution

Material price variance = ( Standard Price - Actual Price ) * Actual Qunatity of materials purchased

= ( 18 - 108460/5800)*5800

= ( 18 - 18.70)*5800

= 4060 Unfavourable