T plc uses a standard costing system, which is material stock account being maintained at standard costs. _The following details have been extracted from the standard cost card in respect of direct materials:
8 kg at £0.80/kg = £6.40 per unit
Budgeted production in April was 850 units.
The following details relate to actual materials purchased and issued to production during April, when actual production was 870 units:
|
Materials purchased |
8200 kg costing £6888 |
|
Materials issued to production |
7150 kg |
Which of the following correctly states the material price and usage variance to be reported?
|
Price |
Usage |
|
|
A |
£286 (A) |
£152 (A) |
|
B |
£286 (A) |
£280 (A) |
|
C |
£286 (A) |
£294 (A) |
|
D |
£328 (A) |
£152 (A) |
|
E |
£328 (A) |
£280 (A) |