The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?
A) $6,664 F.
B) $6,732 F.
C) $13,720U.
D) $13,860 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: What is the materials quantity variance for the month?
A) $6,664 F. 
B) $6,732 F. 
C) $13,720U. 
D) $13,860 U.

Quizplus · Accepted Answer

We can calculate the materials quantity variance using the formula:

MQV = (AQ - SQ) × SP

where AQ is actual quantity, SQ is standard quantity, and SP is standard price.

For Product A:

MQV = (36,000 - 34,000) × $0.20 = $400 F

For Product B:

MQV = (64,000 - 56,000) × $0.20 = $1,600 F

Total MQV = $2,000 F

Therefore, the correct answer is B, $6,732 F, which is closest to our calculated MQV.

The Following Materials Standards Have Been Established for a Particular