During August, 10,000 units were produced.The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound.If there was an unfavorable usage variance of $18,750 for August, the actual quantity of materials used must be
A) 106,250 pounds.
B) 93,750 pounds.
C) 31,875 pounds.
D) 23,438 pounds.

Question

Quizplus · Accepted Answer

10,000 × 10 × $3 = $300,000
$300,000 + $18,750 = $318,750
$318,750 / $3 = 106,250 pounds

During August, 10,000 Units Were Produced