The following materials standards have been established for a particular product

Question

The following materials standards have been established for a particular product:

Standard quantity per unit of output ---------- 7.3 pounds

Standard price ----------------------------------- $14.45 per pound

The following data pertain to operations concerning the product for the last month:

Actual materials purchased ------------------- 6,600 pounds

Actual cost of materials purchased ---------- $91,740

Actual materials used in production -------- 5,900 pounds

Actual output -----------------------------------  1,000 units

What is the materials quantity variance for the month?

$19,460F

$9,730U

$10,115U

$20,230F

$19,460F

$9,730U

$10,115U

$20,230F

Explanation / Answer

INFORMATION TABLE (actual production - 1000 units) Standard Actual Material Material Qty Rate Cost Qty Rate Cost 7300 14.45 105485 5900 13.9 82010 (7.3*1000) = (91740/6600) we have, Material Qty variance (Std qty-Actual Qty)*Std Rate (7300-5900)*14.45 20230 favorable Hence the answer is D

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.