Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The Materials Quantity Variance for August would be recorded as a:
A)Credit of $24,910
B)Credit of $1,060
C)Debit of $1,060
D)Debit of $24,910

Question

Florea Corporation has provided the following data concerning its most important raw material,compound K09B:  The raw material was purchased on account. The Materials Quantity Variance for August would be recorded as a:
A)Credit of $24,910 
B)Credit of $1,060 
C)Debit of $1,060 
D)Debit of $24,910

Quizplus · Accepted Answer

SQ = 100 units × 6.0 liters per unit = 600 liters
Materials quantity variance = (AQ - SQ)× SP
= (560 liters - 600 liters)× $26.50 per liter
= (-40 liters)× $26.50 per liter
= $1,060 U
A favorable variance is credite

Florea Corporation Has Provided the Following Data Concerning Its Most