Glue For All has developed the following material standard to produce one container of Glue-It: 96 ounces of Chemical A at $0.15 per ounce.Glue For All planned to produce 2,000 containers of Glue-It during July.The company purchased 1,500 gallons (192,000 ounces) of Chemical A at a cost of $0.14 per ounce in July.The company used 1,480 gallons of materials to produce 1,950 containers of Glue-It.How much is the material quantity variance?
A)$1,920 favorable
B)$1,894 favorable
C)$336 unfavorable
D)$1,584 unfavorable

Question

Quizplus · Accepted Answer

The material quantity variance is calculated as the difference between the actual quantity of materials used and the standard quantity of materials allowed for the actual output, multiplied by the standard price per unit.Actual quantity of materials used = 1,480 gallons * 128 ounces per gallon = 190,400 ouncesStandard quantity of materials allowed = 1,950 containers * 96 ounces per container = 187,200 ouncesStandard price per unit = $0.15 per ounceMaterial quantity variance = (190,400 ounces - 187,200 ounces) * $0.15 per ounce = $336 unfavorable

Glue for All Has Developed the Following Material Standard to Produce