Asked by Robin Smith on May 07, 2024
Verified
The raw materials quantity variance for the month is closest to:
A) $77 F
B) $70 U
C) $77 U
D) $70 F
Raw Materials Quantity Variance
The difference between the expected and actual quantity of raw materials used in production, affecting manufacturing costs.
- Determine the elements influencing the variance in quantity of raw materials.
- Identify the defining aspects of what is considered a favorable (F) versus an unfavorable (U) variance.
Verified Answer
HH
Hannah HickeyMay 12, 2024
Final Answer :
D
Explanation :
SQ = 8,500 units × 5.0 grams per unit = 42,500 grams
Materials quantity variance = (AQ × SP)− (SQ × SP)
= (AQ - SQ)× SP
= (42,490 grams - 42,500 grams)× $7.00 per gram
= -10 grams × $7.00 per gram
= $70 F
Materials quantity variance = (AQ × SP)− (SQ × SP)
= (AQ - SQ)× SP
= (42,490 grams - 42,500 grams)× $7.00 per gram
= -10 grams × $7.00 per gram
= $70 F
Learning Objectives
- Determine the elements influencing the variance in quantity of raw materials.
- Identify the defining aspects of what is considered a favorable (F) versus an unfavorable (U) variance.