Vin Corporation has the following data related to 100 units of final product: $\begin{array} { l }
\text {Materials: }\
\text {Standard: }& \text { 300 pounds at $ \$ 3.00 $ per pound}\
\text { Actual:}& \text {280 pounds at $ \$ 2.75 $ per pound }\
\end{array}$

What is the material usage variance for Vin Corporation?
A)$60 favorable
B)$60 unfavorable
C)$55 favorable
D)$55 unfavorable

Question

Vin Corporation has the following data related to 100 units of final product: $\begin{array} { l  }
 \text {Materials: }\
 \text {Standard: }& \text { 300 pounds at $ \$ 3.00 $ per pound}\
 \text { Actual:}& \text {280 pounds at $ \$ 2.75 $ per pound }\
\end{array}$

What is the material usage variance for Vin Corporation?
A)$60 favorable
B)$60 unfavorable
C)$55 favorable
D)$55 unfavorable

Quizplus · Accepted Answer

The material usage variance is calculated as (Standard Quantity - Actual Quantity) x Standard Price. Here, (300 - 280) x $3.00 = $60 favorable.

Vin Corporation Has the Following Data Related to 100 Units