Total Materials Variance Calculation
If the materials price variance is $2800 favorable and the materials quantity and labor variances are each $3100 unfavorable, what is the total materials variance?
The total materials variance is Option B: $−300 F.
The total materials variance is the combination of the materials price variance and the materials quantity variance. Given:
Materials price variance = $2800 favorable,
Materials quantity variance = $3100 unfavorable.
Total Materials Variance = Materials Price Variance + Materials Quantity Variance
Total Materials Variance = $2800 - $3100 = -$300.
The negative sign indicates an unfavorable variance. Therefore, the correct answer is Option B: $−300 F.
Considering the information provided, the total materials variance is calculated by adding the materials price variance to the materials quantity variance. Given a favorable materials price variance of $2800 and unfavorable materials quantity variance of $3100, the total materials variance equals $2800 - $3100 = -$300. The negative value signifies an unfavorable variance. Hence, the correct answer is Option B: $−300 F. This indicates that the actual costs exceeded the expected costs by $300, reflecting inefficiencies in either material pricing or usage.