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

Question

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Business

18 July, 23:57

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

Answers (1)

Know the Answer?

Irvin Preston · Answer 1

a) 3,320 F

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