During June, Zinc Company produced 10,000 chainsaw blades.The standard quantity of material allowed per unit was 2 pounds of steel per blade at a standard cost of $5 per pound.Zinc determined that it had a favorable materials usage variance of $1,500 for June.Calculate the actual quantity of materials used by Zinc Company in June.
A) 19,700 pounds
B) 13,305 pounds
C) 12,645 pounds
D) 17,425 pounds

Question

Quizplus · Accepted Answer

Total materials used = 10,000 blades × 2 pounds = 20,000 pounds of steel
 11ea8a4c_496d_03ce_a0e6_33bf472a253d_TB5550_00 OR Actual quantity of materials used = Standard price of material used - Favorable materials usage variance ) / Standard cost of material per pound
= [(10,000 blades × 2 pounds × $50) - $1,500] / $5 = $98,500 / $5 = 19,700 pounds

During June, Zinc Company Produced 10,000 Chainsaw Blades