Question

CC Inc. produced a product that requires 100 standard square feet per unit at a standard price of $4 per square foot. If CC produces 200 units and uses 21,000 square feet at $4.20 per square foot, what is the material quantity variance?

A) $2000
B) $6000
C) $10000
D) $4000

Answer 1

The material quantity variance is -$4,000. Option D

Step-by-step explanation:

To find the material quantity variance, we need to calculate the difference between the standard quantity of material and the actual quantity used, and then multiply it by the standard price per unit.

Standard Quantity = 100 square feet per unit x 200 units = 20,000 square feet

Material Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Price per unit

= (20,000 square feet - 21,000 square feet) x $4 per square foot

= -1,000 square feet x $4

= -4,000

Therefore, the material quantity variance is $4,000. Option D