Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March:

• 8,600 pounds of sand were purchased at a cost of $7,310.
• 7,200 pounds of sand were used for core tests.
• 840 actual direct labor-hours were worked at a cost of $8,610.
• Actual variable manufacturing overhead incurred was $3,200.
-The materials quantity variance for March is:
A)$900 favorable
B)$1,950 favorable
C)$1,950 unfavorable
D)$900 unfavorable

Question

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed:  During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March:

• 8,600 pounds of sand were purchased at a cost of $7,310.
• 7,200 pounds of sand were used for core tests.
• 840 actual direct labor-hours were worked at a cost of $8,610.
• Actual variable manufacturing overhead incurred was $3,200.
-The materials quantity variance for March is:
A)$900 favorable 
B)$1,950 favorable 
C)$1,950 unfavorable 
D)$900 unfavorable

Quizplus · Accepted Answer

SQ = 3 pounds per unit F1F1F1S1F1F1F10 2,000 units = 6,000 pounds
Materials quantity variance = (AQ - SQ)SP
= (7,200 pounds - 6,000 pounds)$0.75 per pound
= (1,200 pounds)$0.75 per pound = $900 U

Cox Engineering Performs Cement Core Tests in Its Laboratory