[The following information applies to the questions displayed below.]
Maple Company's flexible budget,based upon the number of equivalent units produced,called for the use of 5,000 square yards of fabric at a standard cost of $2.45 per square yard.The Production Department actually used 5,200 square yards costing $2.35 per square yard during June.
-The materials quantity variance for Maple Company for June is:
A)$990 favorable.
B)$520 unfavorable.
C)$490 unfavorable.
D)$520 favorable.

Question

Quizplus · Accepted Answer

To calculate the materials quantity variance, we need to use the formula:

(Materials standard price x Actual quantity of materials used) - (Materials standard price x Standard quantity of materials allowed for the actual output)

Plugging in the numbers given, we get:

($2.45 x 5,200) - ($2.45 x 5,000) = $12,740 - $12,250 = $490 unfavorable

Therefore, the correct answer is C, $490 unfavorable.

[The Following Information Applies to the Questions Displayed Below