Denmark Corporation's variance report for the purchasing department reports 1,000 units of material A purchased and 2,400 units of material B purchased. It also reports standard prices of $2 for Material A and $3 for Material B. Actual prices reported are $2.10 for Material A and $2.80 for Material B. Denmark should report a total price variance of

Total material price variance= $380 favorable

Explanation:

Giving the following information:

Material A:

Purchase= 1,000 units

Purchase price= $2.1

Standard price= $2

Material B:

Purchase= 2,400 units

Purchase price= $2.8

Standard price= $3

To calculate the total material price variance, we need to use the following formula on each material:

Direct material price variance= (standard price - actual price)*actual quantity

Material A:

Direct material price variance= (2 -2.1)*1,000

Direct material price variance= $100 unfavorable

Material B:

Direct material price variance= (3 - 2.8)*2,400

Direct material price variance= $480 favorable

Total material price variance= -100 + 480

Total material price variance= $380 favorable

88 because 4 plus 4 equals 8. 40 plus 40 equals 80. 80 plus 8 equals 88

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: