Tidd Corporation makes a product with the following standard costs: The company reported the following results concerning this product in November. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The materials quantity variance for November is:
A)$7,530 U
B)$7,028 U
C)$7,530 F
D)$7,028 F

Question

Tidd Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in November.  The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The materials quantity variance for November is:
A)$7,530 U 
B)$7,028 U 
C)$7,530 F 
D)$7,028 F

Quizplus · Accepted Answer

SQ = 9,000 units F1F1F1S1F1F1F10 4.7 grams per unit = 42,300 grams
Materials quantity variance = (AQ - SQ)SP
= (44,810 grams - 42,300 grams)$3.00 per gram
= (2,510 grams)$3.00 per gram = $7,530 U

Tidd Corporation Makes a Product with the Following Standard Costs