Question

Standard quantity 7.0 liters per unit Standard price $ 1.50 per liter Standard cost $ 10.50 per unit The company budgeted for production of 2,800 units in April, but actual production was 2,900 units. The company used 21,200 liters of direct material to produce this output. The company purchased 19,100 liters of the direct material at $1.60 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is

Answer 1

$1,350U

Step-by-step explanation:

Calculation to determine what The materials quantity variance for April is

Using this formula

Materials quantity variance=(AQ-SQ)*SP

Let plug in the formula

Materials quantity variance=[21,200 liters-(2,900 units*7.0 liters )*$ 1.50

Materials quantity variance{(21,200-20,300)*$1.50

Materials quantity variance=900*$1.50

Materials quantity variance=$1,350 U

Therefore the Materials quantity variance is $1,350 Unfavorable