231k views
2 votes
The following materials standards have been established for a particular raw material used in the company's sole product:

Standard quantity per unit of output: 1 pound
Standard price: $16.60 per pound
The following data pertain to operations concerning the product for the last month:
Actual materials purchased: 2,200 pounds
actual cost of materials purchased: 34,650
actual materials used in production: 1,900 pounds
actual oupout: 2,100 units
What is the materials quantity variance for the month?
a) 3,320 F
b) 3,150 F
c) 4,980 U
d) 4,725 U

1 Answer

6 votes

Answer:

a) 3,320 F

Step-by-step explanation:

The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $16.60 × (1 pounds × 2,100 units - 1,900 pounds)

= $16.60 × (2,100 pounds - 1,900 pounds)

= $16.60 × 200 pounds

= $3,320 favorable

The material quantity variance comes in favorable as standard quantity is more than the actual quantity so it should be favorable

User String
by
8.3k points

No related questions found