Question

The following materials standards have been established for a particular product: Standard quantity per unit of output 1.7 meters Standard price $19.80 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased 5,800 meters Actual cost of materials purchased $113,680 Actual materials used in production 5,100 meters Actual output 3,200 units What is the material quantity variance:

Answer 1

$6,732 F

Step-by-step explanation:

SQ = 1.7 meters per unit × 3,200 units = 5,440 meters

Materials quantity variance = (AQ - SQ) × SP

= (5,100 meters - 5,440 meters) × $19.80 per meter

= (-340 meters) × $19.80 per meter

= $6,732 F

Therefore the material quantity variance is

$6,732 F