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Abbington Company has a manufacturing facility in Brooklyn that manufactures robotic equipment for the auto industry. For Year 1, Abbington collected the following information from
Abbington Company has a manufacturing facility in Brooklyn that manufactures robotic equipment for the auto industry. For Year 1, Abbington collected the following information from its main production line:
Actual quantity purchased
250 units
Actual quantity used
140 units
Units standard quantity
110 units
Actual price paid
$12 per unit
Standard price
$14 per unit
Abbington isolates price variances at the time of purchase. What is the materials price variance for Year 1?
1. $280 favorable
2. $500 unfavorable
3. $280 unfavorable
4. $500 favorable
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