Ace Company has a manufacturing facility in Brooklyn that manufactures robotic equipment for the auto industry. For Year 1, Ace collected the following information from its main production line:

Ace isolates price variances at the time of purchase. What is the materials price variance for Year 1?

Actual quantity purchased 300 units

Actual quantity used 190 units

Standard quantity for units produced 180 units

Actual price paid $8 per unit

Standard price $12 per unit

ANS

1. $1,200 unfavorable

2. $760 unfavorable

3. $1,200 favorable

4. $760 favorable