If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit,then the materials quantity variance is:
A)$2,850 Favorable.
B)$1,575 Unfavorable.
C)$1,275 Favorable.
D)$2,850 Unfavorable.

Question

Quizplus · Accepted Answer

Material quantity variance = (Standard Quantity - Actual Quantity) x Standard Price

= (84,500 - 95,000) x $0.15

= $1,575 unfavorable.

Therefore, the correct answer is option B, $1,575 unfavorable.

If the Standard Quantity of Materials Is 84,500 Units @