Degregorio Corporation makes a product that uses a material with the following direct material standards:

Standard quantity 3.7 kilos per unit

Standard price $5 per kilo

The company produced 6,300 units in November using 23,780 kilos of the material. During the month, the company purchased 25,950 kilos of the direct material at a total cost of $124,560. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for November is:

A. $2,350 F

B. $2,256 F

C. $2,350 U

D. $2,256 U

Question

Isabelle Zamora

Business

12 May, 18:14

Degregorio Corporation makes a product that uses a material with the following direct material standards:

Standard quantity 3.7 kilos per unit

Standard price $5 per kilo

The company produced 6,300 units in November using 23,780 kilos of the material. During the month, the company purchased 25,950 kilos of the direct material at a total cost of $124,560. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for November is:

A. $2,350 F

B. $2,256 F

C. $2,350 U

D. $2,256 U

+4

Answers (1)

Know the Answer?

Harding · Answer 1

Materials quantity variance = $2,350 F

Explanation:

Given:

Standard quantity = 3.7 kilos per unit

Standard price = $5 per kilo

Unit produced = 6,300

Total material = 23,780

Computation:

Materials quantity variance = (Actual quantity * Standard price) - (Standard quantity * Standard price)

Materials quantity variance = (23,780 * $) - (6,300 * 3.7 * $5)

Materials quantity variance = $118,900 - $116,550

Materials quantity variance = $2,350 F