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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