Carskadon Corporation makes a product that uses a material with the following direct material standards: The company produced 3,000 units in December using 6,270 pounds of the material. During the month, the company purchased 7,100 pounds of the direct material at a total cost of $13,490. The direct materials purchases variance is computed when the materials are purchased.
-The materials quantity variance for December is:
A)$660 F
B)$660 U
C)$627 F
D)$627 U

Question

Carskadon Corporation makes a product that uses a material with the following direct material standards:  The company produced 3,000 units in December using 6,270 pounds of the material. During the month, the company purchased 7,100 pounds of the direct material at a total cost of $13,490. The direct materials purchases variance is computed when the materials are purchased.
-The materials quantity variance for December is:
A)$660 F 
B)$660 U 
C)$627 F 
D)$627 U

Quizplus · Accepted Answer

SQ = 3,000 units F1F1F1S1F1F1F10 2.2 pounds per unit = 6,600 pounds
Materials quantity variance = (AQ - SQ)SP
= (6,270 pounds - 6,600 pounds)$2.00 per pound
= (-330 pounds)$2.00 per pound = $660 F

Carskadon Corporation Makes a Product That Uses a Material with the Following