Degregorio Corporation makes a product that uses a material with the following d

Question

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

The company produced 7,500 units in November using 26,700 kilos of the material. During the month, the company purchased 28,850 kilos of the direct material at a total cost of $196,180. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for November is:

$3,150 F

or

$3,056 F

or

$3,150 U

or

$3,056 U

Explanation / Answer

Materials quantity variance for November = Standard price * (Actual quantity used - Standard quantity)

= $7 * [26,700 * (7,500*3.5)]

= $7 * (26,700 * 26,250)

= $3,150 Unfavourable

The answer is $3,150 U

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

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