Managerial Accounting

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Calculating Material Variances for Peaches

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Whipple Corp makes peach pies to sell to wholesalers. One shipment of peach pies requires 9,000 pounds of peaches at a budgeted price of \$4.50 per pound. The company purchased 8,900 lbs. in July and paid a \$40,762 for peaches. What is the price variance?

A

$712 Favorable

B

$712 Unfavorable

C

$450 Unfavorable

D

$450 Favorable