84,000 units of raw materials inventory were purchased for P126,000 and 4 units of raw
materials are required to produce one unit of final product. In October, the company
produced 14,400 units of product. The standard cost allowed for materials was P72,000,
and there was an unfavorable usage variance of P3,000.
The materials price variance for the units used in October was
a. P15,000 unfavorable. c. P3,000 unfavorable.
b. P15,000 favorable. d. P3,000 favorable.
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