The actual price of a widget is $10 and the budgeted price is $7. What is the price variance for 1,000 widgets?
$1,000
$3,000
$3
$1,700
Actual Cost = $10 per widget Budgeted Cost = $7 per widget Quantity = 1,000 widgets Price Variance = (Actual Cost - Budgeted Cost) x Quantity Price Variance = ($10 - $7) x 1,000 Price Variance = $3 x 1,000 Price Variance = $3,000 Therefore, the price variance for 1,000 widgets is $3,000.