To determine the materials price variance for the month, we need to follow these steps:
1. Identify the given values:
- Standard quantity per unit of output: 8.3 grams
- Standard price: \[tex]$19.15 per gram
- Actual materials purchased: 7.500 grams
- Actual cost of materials purchased: \$[/tex]141.375
- Actual materials used in production: 7.100 grams
- Actual output: 700 units
2. Calculate the standard cost based on the actual materials purchased:
The standard cost of materials purchased is computed by multiplying the actual quantity of materials purchased by the standard price:
[tex]\[
\text{Standard Cost} = \text{Actual Materials Purchased} \times \text{Standard Price}
\][/tex]
Plugging in the given values:
[tex]\[
\text{Standard Cost} = 7.500 \, \text{grams} \times 19.15 \, \text{\$ per gram} = 143.625 \, \$
\][/tex]
3. Calculate the materials price variance:
The materials price variance is the difference between the actual cost of materials purchased and the standard cost of materials purchased:
[tex]\[
\text{Materials Price Variance} = \text{Actual Cost of Materials Purchased} - \text{Standard Cost}
\][/tex]
Substituting the given values:
[tex]\[
\text{Materials Price Variance} = 141.375 \, \$ - 143.625 \, \$ = -2.25 \, \$
\][/tex]
A negative variance indicates a favorable variance. In this context, it means that the company spent less on materials than what was expected based on the standard cost.
Given the result:
- The materials price variance is [tex]\(-2.25 \, \$\)[/tex].
So, the correct answer is:
[tex]\[
\boxed{D) \$ 2,250 F}
\][/tex]
This indicates that the actual cost of materials was \$2.25 less than the expected cost based on the standard rate.
