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Examveda

If actual price input is $500, budgeted price of input is $300 and actual quantity of input is 50 units, then price variance would be

A. $4,000

B. $6,000

C. $8,000

D. $10,000

Answer: Option D

Solution(By Examveda Team)

Price variance = (actual price input - budgeted price of input) × Actual quantity of input
= ($500 - $300) × 50 = $10,000.

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