Luma Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for September:
The raw materials quantity variance for the month is closest to:
A) $69 F
B) $78 F
C) $69 U
D) $78 U

Question

Luma Inc. has provided the following data concerning one of the products in its standard cost system.  The company has reported the following actual results for the product for September:
 The raw materials quantity variance for the month is closest to:
A) $69 F 
B) $78 F 
C) $69 U 
D) $78 U

Quizplus · Accepted Answer

SQ = 2,100 units × 4.8 ounces per unit = 10,080 ounces
Materials quantity variance = (AQ × SP) − (SQ × SP)
= (AQ - SQ) × SP
= (10,090 ounces - 10,080 ounces) × $6.90 per ounce
= 10 ounces × $6.90 per ounce
= $69 U

Luma Inc Has Provided the Following Data Concerning One of the the Products