Gazelle Company has the following materials standards have been established for
ID: 2415476 • Letter: G
Question
Gazelle Company has the following materials standards have been established for a particular product:
Standard quantity per unit of output
2.5
meters
Standard price
$ 20.00
per meter
The following data pertain to operations concerning the product for the last month:
Actual materials purchased
4,000
meters
Actual cost of materials purchased
$ 120,000
Actual materials used in production
3,750
meters
Actual output
4,100
units
What is the materials quantity variance for the month?
Standard quantity per unit of output
2.5
meters
Standard price
$ 20.00
per meter
Explanation / Answer
Material Quantity Variance=(Standard quantity-Actual quantity)*Standard price
=(10250metres#-3750metres)*$20
=6500metres*$20
=$130000 Favorable
# Standard quantity=Budgeted input for actual output
=2.5 metres*4100 units
=10250 metres
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