Compound Q11H is a raw material used to make Grater Corporation's major product. The standard cost of compound Q11H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below: The raw material was purchased on account.
-The Materials Quantity Variance for October would be recorded as a:
A)Credit of $3,680
B)Debit of $4,140
C)Credit of $4,140
D)Debit of $3,680

Question

Compound Q11H is a raw material used to make Grater Corporation's major product. The standard cost of compound Q11H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below:  The raw material was purchased on account.
-The Materials Quantity Variance for October would be recorded as a:
A)Credit of $3,680 
B)Debit of $4,140 
C)Credit of $4,140 
D)Debit of $3,680

Quizplus · Accepted Answer

The Materials Quantity Variance is favorable, indicated by a credit, and the amount is $3,680.

Compound Q11H Is a Raw Material Used to Make Grater