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Bridgeware Company has a materials price standard of $2.50 per kilogram.Four thousand kilograms of materials were purchased at $2.40 a kilogram.The actual quantity of materials used was 3,500 kilograms, although the standard quantity allowed for the output was 3,400 kilograms.
-Bridgeware Company's materials quantity variance is
A)$250 U.
B)$250 F.
C)$340 F.
D)$340 U.

Question

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Bridgeware Company has a materials price standard of $2.50 per kilogram.Four thousand kilograms of materials were purchased at $2.40 a kilogram.The actual quantity of materials used was 3,500 kilograms, although the standard quantity allowed for the output was 3,400 kilograms.
-Bridgeware Company's materials quantity variance is
A)$250 U.
B)$250 F.
C)$340 F.
D)$340 U.

Quizplus · Accepted Answer

The materials quantity variance is calculated as (Actual quantity - Standard quantity) x Standard price. In this case, the actual quantity is 3,500 kilograms, the standard quantity is 3,400 kilograms, and the standard price is $2.50 per kilogram. Therefore, the materials quantity variance is (3,500 - 3,400) x $2.50 = $250 U.

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