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Pendennis plc had the following budget and actual figures for Product ZN6 during April: Budget Actual Output 2,200 units 2,500 units Sales revenue 176,000 205,000
Pendennis plc had the following budget and actual figures for Product ZN6 during April:
| Budget | Actual | |||
| Output | 2,200 | units | 2,500 | units |
| Sales revenue | 176,000 | 205,000 | ||
| Raw materials | (77,000) | 22,000 metres | (98,800) | 28,000 metres |
| Labour | (66,000) | 11,000 hours | (65,000) | 13,000 hours |
| Fixed overheads | (24,200) | (21,400) | ||
| Profit | 8,800 | 19,800 |
What is the materials price variance for Product ZN6 for the month of April?
A.
800
adverse
B.
714
favourable
C.
800
favourable
D.
714
adverse
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