Question

Assume that pearle vision uses standard costs to control the materials in its made-to-order sunglasses. the standards call for four ounces of material for each pair of lenses. the standard cost per ounce of material is $12. during november 2023, the santa clara location produced 6,500 pairs of sunglasses and used 22,000 ounces of materials. the actual cost of the materials during november was $12.50 per ounce, and there were no beginning or ending inventories.

calculate the materials quantity variance.

Answer 1

The materials quantity variance at Pearle Vision's Santa Clara location is a favorable variance of $13,000, calculated using the differences between actual and standard material quantities multiplied by the standard cost per ounce.

Step-by-step explanation:

The materials quantity variance for Pearle Vision's Santa Clara location producing sunglasses during November is an unfavorable variance of $13,000.

To calculate this, we need to apply the formula for materials quantity variance which is:

(Actual Quantity - Standard Quantity) x Standard Cost = Quantity Variance

Given that Pearle Vision's standard calls for 4 ounces of material per pair of sunglasses, and the standard cost per ounce is $12, we can calculate the standard quantity: 6,500 pairs x 4 ounces/pair = 26,000 ounces.

Now, we substitute the values into the formula:

(22,000 ounces - 26,000 ounces) x $12/ounce = (-4,000 ounces) x $12/ounce = -$48,000.

Since the actual quantity used is less than the standard quantity, the result is a favorable variance. However, if the actual quantity used had been more than the standard quantity, we would have an unfavorable variance indicating that more materials were used than the standard allows.