The following materials standards have been established for a particulat product

Question

The following materials standards have been established for a particulat product Standard quantity per unit of output..... 6.9 pounds Standard price...................................... $17.70 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased.................. 6,200 pounds Actual cost of materials purchased...... $113,460 Actual materials used in production..... 5,700 pounds Actual output........................................ 700 units What is the materials quantity variance for the month? A. 9,150 U B. 8,850 U C. 15,921 U D. 15,399 U

Explanation / Answer

1) Material Quantity (or usage) variance - Stnd quantity per unit x units produced (6.9 pounds x 700) = 4830 vs Actual usage 5,700 = (5700-4830) x Stnd price of 17.7 =15399; =15399 so answer is D.15399 U

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