Accounting Multiple Choice Question – 30 January 2021

The following material costs relate to the manufacture of 100 units of a product.

What is the raw material price variance?

Select ONE answer:

1. £495 adverse
2. £495 favourable
3. £1,320 adverse
4. £1,320 favourable

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – £9,570 / 1,650kgs =£5.8 – £5.5 = £0.30 * 1,650 = 495A
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.