MC Qu. 92 Landram Corporation makes a product with the following standard costs:
ID: 3123268 • Letter: M
Question
MC Qu. 92 Landram Corporation makes a product with the following standard costs:
The company produced 4,400 units in April using 10,200 liters of direct material and 2,180 direct labor-hours. During the month, the company purchased 10,770 liters of the direct material at $7.10. per liter. The actual direct labor rate was $16.65 per hour and the actual variable overhead rate was $4.00 per hour.
$9,800 F
$9,940 F
$9,800 U
$9,940 U
Landram Corporation makes a product with the following standard costs:Explanation / Answer
given
total produced unit= 4400
total direct material used(actual quantity used) =10200 liter
standard quantity allowed= 4400*2.0= 8800 liter
standard rate of material = 7.0$
Direct materials quantity variance=( actual quantity used X Standard Rate of material)-(standard quantity allowed X standard rate of material)
Direct materials quantity variance=(10200*7)-(8800*7)=
the material quantity variance =(71400-61600)= $9800F
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