Q170
If actual price input is 500, budgeted price of input is 300 and actual quantity of input is 50 units, then price variance would be
A.
$4,000
B.
$6,000
C.
$8,000
D.
$10,000
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Price variance = (actual price input - budgeted price of input) × Actual quantity of input = (300) × 50 = $10,000.