The Carter Company has a standard cost system. In July, the company purchased and used 21,750 pounds of direct material at an actual cost of $52,500; the materials quantity variance was $1,875 unfavorable, and the standard quantity of materials allowed for July production was 21,500 pounds. Estimate the materials price variance (MPV) for July.

The correct formula for material price variance (MPV) is:

a.

MPV = SP/(AQ-SQ)

b.

MPV = AQ(AP-SP)

c.

MPV = MQV/(AQ-SQ)

The actual price is:

a.

$ 2.41

b.

$ 2.98

c.

$ 3.89

The Standard Price (SP) is:

a.

$ 7.5

b.

$ 2.9

c.

$ 3.14

The formula for Material Quantity Variance (MQV) is:

a.

MQV = SP(AQ-SQ)

b.

MQV = AQ (AP+SP)

c.

MQV = AQ(AP-SP)

The total Material Price Variance (MPV) is:

a.

-12,035

b.

-110,625

c.

-1,957.5