Question

Bubba'a flexible budget for June, based upon actual output, called for the use of 5,250 pounds of materials at a standard cost of $3.70 per pound. The Production Department actually used 5,350 pounds of materials costing $3.50 per pound during June.

The materials quantity variance for Bubba's operations is:
A. $1.575 favorable.
B. $1,605 unfavorable.
C. $370 unfavorable.
D. $1,605 favorable

Answer 1

The materials quantity variance for Bubba's operations is $370 unfavorable.

Step-by-step explanation:

The materials quantity variance for Bubba's operations can be calculated using the formula: (Actual Quantity - Standard Quantity) x Standard Price. In this case, the actual quantity used is 5,350 pounds and the standard quantity is 5,250 pounds.

The standard price is $3.70 per pound. Plugging in these values, we get:

(5350 - 5250) x 3.70 = 100 x 3.70 = $370.

Therefore, the materials quantity variance for Bubba's operations is $370 unfavorable.