Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: The raw material was purchased on account.
-The Materials Quantity Variance for January would be recorded as a:
A) Credit of $2,586
B) Credit of $16,809
C) Debit of $16,809
D) Debit of $2,586

Question

Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:  The raw material was purchased on account.
-The Materials Quantity Variance for January would be recorded as a:
A) Credit of $2,586 
B) Credit of $16,809 
C) Debit of $16,809 
D) Debit of $2,586

Quizplus · Accepted Answer

The Materials Quantity Variance for January is calculated by multiplying the standard price of compound K91J by the difference between the actual quantity used and the standard quantity allowed for actual production. Since the actual quantity used was less than the standard quantity allowed, there is a favorable variance, which is recorded with a debit to the Materials Quantity Variance account. Therefore, the correct answer is a Debit of $2,586.

Henifin Corporation Has Provided the Following Data Concerning Its Most