UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

104. Correct answer c. The raw material price variance (purchase price variance) is $10,000 U

as shown below.

Price variance = (Actual price – Standard price) x Actual quantity

= ($2.02 - $2.00) x 500,000

= $10,000 U