Asked by Brittney Buchanon on Jun 11, 2024
Verified
The materials quantity variance for July is:
A) $870 U
B) $1,044 U
C) $870 F
D) $1,044 F
Materials Quantity Variance
The difference between the actual amount of materials used in production and the standard amount expected, multiplied by the standard cost per unit.
- Acquire knowledge on the computation of materials quantity variance.
- Outline the distinct features that define a favorable (F) in contrast to an unfavorable (U) variance.
Verified Answer
JZ
Javeria ZahidJun 14, 2024
Final Answer :
A
Explanation :
SQ = 3,000 units × 3.5 grams per unit = 10,500 grams
Materials quantity variance = (AQ - SQ)× SP
= (11,370 grams ? 10,500 grams)× $1.00 per gram
= (870 grams)× $1.00 per gram
= $870 U
Materials quantity variance = (AQ - SQ)× SP
= (11,370 grams ? 10,500 grams)× $1.00 per gram
= (870 grams)× $1.00 per gram
= $870 U
Learning Objectives
- Acquire knowledge on the computation of materials quantity variance.
- Outline the distinct features that define a favorable (F) in contrast to an unfavorable (U) variance.