The following materials standards have been established for a particular product
ID: 2437129 • Letter: T
Question
The following materials standards have been established for a particular product:
Standard quantity per unit of output
1.7
meters
Standard price
$19.80
per meter
The following data pertain to operations concerning the product for the last month:
Actual materials purchased
5,800
meters
Actual cost of materials purchased
$113,680
Actual materials used in production
5,100
meters
Actual output
3,200
units
What is the materials quantity variance for the month?
Standard quantity per unit of output
1.7
meters
Standard price
$19.80
per meter
Explanation / Answer
Materials quantity variance for the month = 19.8*(5100-3200*1.7)= $6732 Favorable
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