A is corrent. The requirement is to calculate the material price variance for material A. A is corrent because the material price variance is calculated by multiplying the difference between the actual price and the standard price by the actual quantity. In this case, the material price variance is equal to $1,300 favorable [($3.80 – $4.00) × 6500 lbs].
B is incorrect. The material price variance is equal to the difference between the actual price and the standard price multiplied by the actual quantity.
C is incorrect. The material price variance is equal to the difference between the actual price and the standard price multiplied by the actual quantity.
D is incorrect. The material price variance is equal to the difference between the actual price and the standard price multiplied by the actual quantity.
