Perkins Company, Which Has a Standard Cost System, Had 500

Perkins Company, which has a standard cost system, had 500 pounds of raw material X in its inventory at June 1, purchased in May for £1.20 per pound and carried at a standard cost of £1.00 per pound. The following information pertains to raw material X for the month of June: $\begin{array}{ll}\text { Actual pounds purchased } & 1,400 \\\text { Actual pounds used } & 1,500 \\\text { Standard pounds allowed for actual production } & 1,300 \\\text { Standard cost per pound } & £ 1.00 \\\text { Actual cost per pound } & £ 1.10\end{array}$
The unfavourable materials purchase price variance for raw material X for June was

A) £ 0.
B) £130.
C) £140.
D) £150.

Correct Answer:

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