Materials Quantity Variance:Solving for Actual Quantity
Todco planned to produce 3,000 units of its single product,Teragram,during November.The standard specifications for one unit of Teragram include six pounds of material at $0.30 per pound.Actual production in November was 3,100 units of Teragram.The accountant computed a favorable materials purchase price variance of $380 and an unfavorable materials quantity variance of $120.
Required:
Based on these data,calculate how many pounds of material were used in the production of Teragram during November.

Question

Quizplus · Accepted Answer

The Answer is Solution to Materials Quantity Variance: Solving for Actual Quantity (CMA adapted)(10 minutes)
The formula for the materials quantity variance is:
Materials quantity variance = (Q_a - Q_s)× P_s
The standard price of the material,P_s,is $0.30.The standard quantity of materials,Q_s,is:
_{3,100 units of Teragram x 6 pounds per unit = 18,600 pounds.}
_{Substituting the known quantities of the variables into the formula for the material quantity}_{variance yields:}

Solution to Materials Quantity Variance: Solving for Actual Quantity (CMA adapted)(10 minutes) The formula for the materials quantity variance is: Materials quantity variance = (Q<sub>a</sub> - Q<sub>s</sub>)× P<sub>s</sub> The standard price of the material,P<sub>s</sub>,is $0.30.The standard quantity of materials,Q<sub>s</sub>,is: <sub>3,100 units of Teragram x 6 pounds per unit = 18,600 pounds.</sub> <sub>Substituting the known quantities of the variables into the formula for the material quantity </sub><sub>variance yields:</sub>