The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month:
The direct materials purchases variance is computed when the materials are purchased.
What is the materials quantity variance for the month?
A) $6,550 U
B) $15,982 U
C) $16,104 U
D) $6,600 U

Question

The following materials standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:
 The direct materials purchases variance is computed when the materials are purchased.
What is the materials quantity variance for the month?
A) $6,550 U 
B) $15,982 U 
C) $16,104 U 
D) $6,600 U

Quizplus · Accepted Answer

SQ = 700 units × 4.4 pounds per unit = 3,080 pounds
Materials quantity variance = (AQ − SQ) × SP
= (4,300 pounds − 3,080 pounds) × $13.20 per pound
= (1,220 pounds) × $13.20 per pound
= $16,104 U

The Following Materials Standards Have Been Established for a Particular