[The following information applies to the questions displayed below.]
James Inc.'s flexible budget for June,based upon actual output,called for the use of 10,500 pounds of materials at a standard cost of $7.40 per pound.The Production Department actually used 10,700 pounds of materials costing $7.10 per pound during June.
-Greenleaf's flexible budget for June,based on actual output,called for the use of 10,000 square feet of materials at a standard cost of $9.90 per square foot.Company records show that the actual price paid for the materials used in June was $9.70 per square foot,and that the direct materials price variance for the month was $2,090 favorable.The materials quantity variance for Greenleaf's June operations was:
A)$1,000 favorable.
B)$4,455 unfavorable.
C)$4,365 favorable.
D)Impossible to determine from the data given.

Question

Quizplus · Accepted Answer

To calculate the materials quantity variance, we need to compare the actual quantity used with the standard quantity allowed for actual output.

For James Inc.: 
Standard quantity allowed = 10,500 pounds 
Actual quantity used = 10,700 pounds 
Materials quantity variance = (10,700 - 10,500) x $7.40 = $1,480 unfavorable

For Greenleaf: 
Standard quantity allowed = 10,000 square feet 
Actual quantity used = Not given 
Therefore, it is impossible to determine the materials quantity variance for Greenleaf from the data given.

Thus, the correct answer is B.

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