Given a budgeted input cost of $50 and a price variance of $30, what is the actual price?

Multiple choice question for Direct Cost Variances and Management Control. Select an option, then review the explanation below.

Explanation

The price variance is the difference between the actual price and the budgeted price. Since the variance is $30 and the budgeted price is $50, the actual price is $50 + $30 = $80.

Practice related questions from the same subject.

1.Within the hierarchy of costing and budgeting, which of the following represents a product sustaining cost?
2.Given that the actual cost of a material is $700 while the planned cost was $900, what type of variance is observed?
3.Given that the actual outcome is $65,000 and the static budget variance amounts to $35,000, what is the value of the static budget?
4.What term is used to describe the anticipated performance of a company?
5.Given that the actual labor cost is $1200 while the planned labor cost is $1000, what is the nature of the labor price variance?

Given a budgeted input cost of $50 and a price variance of $30, what is the actual price?

Explanation

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