Question

The standard quantity allowed for the units produced was 4000 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $350 favorable. Each unit uses 1 pound of materials. How many units were actually produced

Answer 1

Unites actually produced = 4,000 units

Step-by-step explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price

Material quantity variance in unit = Materials quantity variance in value /standard price

Material quantity variance in unit = 350/2.50 =140 pounds

Actual quantity used (in pounds) = standard quantity allowed - Material quantity variance

= 4000 - 140 = 3,860 pounds

Actual units produced = Standard quantity allowed/ standard quantity per unit

= 4,000/1 = 4000 units

Unites actually produced = 4,000 units