Galaxy technologies corp. manufactures cell phones. during the year, 150,000 phones were manufactured. materials and labor standards for producing the phones are as follows:
direct materials (2 pieces of plastic material @ $3.25) - $6.50
direct labor (2 hours @ $10) - 20.00
galaxy technologies corp. purchased and used 500,000 pieces of plastic material at $2.50 each, and its actual labor hours were 340,000 hours at a wage rate of $10.50. what is the materials price variance?
Answers: 1
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