2 Buckler Company manufactures desks with vinyl tops. The standard material cost

Question

2

Buckler Company manufactures desks with vinyl tops. The standard material cost for the vinyl used per Model S desk is $27.00 based on 12 square feet of vinyl at a cost of $2.25 per square foot. A production run of 1,000 desks in March resulted in usage of 12,600 square feet of vinyl at a cost of $2.00 per square foot, a total cost of $25,200. The materials quantity variance resulting from the above production run was:

            A)      $1,200 unfavorable

            B)      $1,350 unfavorable

            C)      $1,800 favorable

            D)      $3,150 favorable

Explanation / Answer

Standard Details = Standard Quantity required per Unit = 12 Square feet and

Stadard Price per Square foot = $ 2.25

Actual Details = Number of Units = 1,000 and Actual Usage Quantity = 12,600 Square foot.

Standard Quantity required to manufacture 1,000 units = 1000 * 12 = 12,000 Square foot

The formula to calculate Material Quantity Variance = ( Standard Quantity - Actual Quantity ) * Standard Price

( 12,000 - 12,600 ) * 2.25

- 6,000 * 2.25 = - $ 1,350 that is $ 1,350 Unfavorable.

The Answer is "B" = $ 1,350 Unfavorable.

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