Reference: 11-06
The Alpha Company produces toys for national distribution. Standards for a particular toy are:
Materials: 12 grams per unit at 56 per gram. Labour: 2 hours per unit at $12.75 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labour: 2,500 hours worked at a total cost of $33,000.
-The materials quantity variance is?
A)$1,820 F.
B)$1,120 F.
C)$1,120 U.
D)$1,820 U.

Question

Quizplus · Accepted Answer

Materials quantity variance = (Actual quantity used - Standard quantity allowed) x Standard price
= (14,000g - 12,000g) x $0.56
= 2,000g x $0.56
= $1,120 U

Therefore, the answer is C, $1,120 U.

Reference: 11-06 the Alpha Company Produces Toys for National Distribution. Standards for Standards