Production records indicate that actual quantity of raw materials used for the prior month was 45,000

Production records indicate that actual quantity of raw materials used for the prior month was 45,000 pounds at $4 per pound to produce 10,000 units of finished product. Engineering standards required five pounds of raw material at $5 per pound for each unit of finished product. What is the materials price variance?

a. $45,000 favorable

b. $45,000 unfavorable

c. $50,000 favorable

d. $50,000 unfavorable SOLUTION