Wimberly Company Wimberly Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar).
Refer to Wimberly Company.What is the material quantity variance?
A)$ 510 F
B)$ 525 U
C)$ 525 F
D)$3,675 U

Question

Wimberly Company Wimberly Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar).
 Refer to Wimberly Company.What is the material quantity variance?
A)$ 510 F 
B)$ 525 U 
C)$ 525 F 
D)$3,675 U

Quizplus · Accepted Answer

The material quantity variance formula is (Actual quantity used - Standard quantity allowed) x Standard price. 
Using the information provided, we can calculate the standard quantity allowed as follows: 
Standard quantity allowed = 4,500 units x 1.1 lbs per unit = 4,950 lbs 
Actual quantity used = 4,200 units x 1.2 lbs per unit = 5,040 lbs 
Material quantity variance = (5,040 lbs - 4,950 lbs) x $1 = $90F (Favorable means that the actual cost of material used was less than what was expected) 
Therefore, the correct answer is choice C, $525 F.

Wimberly Company Wimberly Company Has the Following Information Available for March