Stanley Company has the following information available for October when 3,000 u

Question

Stanley Company has the following information available for October when 3,000 units are produced:

Standard materials cost per unit

3.5 pounds at $4.50 per pound

Actual data for October:

Materials purchased

12,300 pounds at $4.25 per pound.

Materials used

11,750 pounds

The materials usage variance is:

Stanley Company has the following information available for October when 3,000 units are produced:

Standard materials cost per unit

3.5 pounds at $4.50 per pound

Actual data for October:

Materials purchased

12,300 pounds at $4.25 per pound.

Materials used

11,750 pounds

The materials usage variance is:

Explanation / Answer

Material Usage Variance = (Actual Quantity - Standard Quantity) x Standard Price

                                                      (11750 -3000*3.5)*4.5 =5625 unfavorable

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