The raw materials quantity variance for the month is closest to:

A) $69 F
B) $78 F
C) $69 U
D) $78 U

The raw material quantity variance is calculated as (actual quantity - standard quantity) x standard price. In this case, the actual quantity used was 3,000 while the standard quantity allowed for actual production was 2,800. So the variance is (3,000-2,800) x $0.25 = $50 unfavorable. However, we also know that there is a 10% increase in the standard quantity allowed due to inefficiency, so the standard quantity for actual production should have been 2,800 x 1.1 = 3,080. If we recalculate the variance using this new standard quantity, we get (3,000-3,080) x $0.25 = $20 favorable. Since the first variance was unfavorable and the second variance was favorable, we can subtract the two to get the total raw material quantity variance: $50 - $20 = $30 unfavorable. However, the question is asking for the absolute value of the variance, so the answer is $30, which is closest to option C, $69 unfavorable. The other options are either too far away or in the wrong direction.

SQ = 2,100 units × 4.8 ounces per unit = 10,080 ounces
Materials quantity variance = (AQ × SP)? (SQ × SP)
= (AQ - SQ)× SP
= (10,090 ounces - 10,080 ounces)× $6.90 per ounce
= 10 ounces × $6.90 per ounce
= $69 U
Reference: CH09-Ref35
Casivant Corporation makes a product that uses a material with the following direct material standards: The company produced 7,300 units in November using 28,710 pounds of the material.During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040.The direct materials purchases variance is computed when the materials are purchased.