Assume that the standard cost to make one unit of product includes 12 units of raw materials at a price of $2 per unit. In Aug, 17,000 units of raw materials were purchased for $50,800, and 12,300 units of raw materials were used to produce 1,000 units of finished product.
What is the materials quantity variance?
A) $ 600 (U)
B) $1,800 (U)
C) $ 600 (F)
D) $1,200 (U)

Question

Quizplus · Accepted Answer

[12 × 1,000) - 12,300] x $2 = $600 (U)

Assume That the Standard Cost to Make One Unit of Product