Lindros Corporation makes hockey pucks, Following are the standard costs for pro

Question

Lindros Corporation makes hockey pucks, Following are the standard costs for producing the hockey pucks:

In April Lindros produced 4,400 hockey pucks using 10,140 kilos of the direct material and 2,120 direct labor-hours. During April, the company purchased 10,710 kilos of the direct material at a cost of $76,590. The actual direct labor cost was $38,254 and the actual variable overhead cost was $11,955.

The materials quantity variance for April is:

Multiple Choice

A.) $9,380 F

B.) $9,583 F

C.) $9,380 U

D.) $9,583 U

  Inputs Standard Quantity or Hours Standard Price or Rate   Direct materials                  2.0 kilos          $7.00 per kilo   Direct labor                  0.8 hours          $16.00 per hour   Variable overhead                  0.8 hours          $4.00 per hour

Explanation / Answer

Material quantity variance = (Standard quantity-actual quantity)Standard price

= (4400*2-10140)7

Material quantity variance = 9380 U

so answer is c) $9,380 U

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