Reichs Company The following information is for Reichs Company's September production:
(Round all answers to the nearest dollar.)
Refer to Reichs Company. What is the material quantity variance?
A) $ 740 F
B) $ 750 F
C) $ 750 U
D) $2,625 U

Question

Reichs Company The following information is for Reichs Company's September production:
 (Round all answers to the nearest dollar.)
Refer to Reichs Company. What is the material quantity variance?
A) $ 740 F 
B) $ 750 F 
C) $ 750 U 
D) $2,625 U

Quizplus · Accepted Answer

The material quantity variance is calculated as (standard quantity - actual quantity) x standard price. Using the information given, the standard quantity is 150 units, actual quantity is 160 units, and standard price is $17. Therefore, the material quantity variance is (150 - 160) x $17, which equals $170 F. Since the variance is unfavorable, the answer is $170 U, which is closest to option C.

Reichs Company the Following Information Is for Reichs Company's September