Reichs Company The following information is for Reichs Company's September production:
$\begin{array}{ll}
\textbf { Standard: }\
\text { Material } & 4.0 \text { feet per unit } @ \$ 3.75 \text { per foot } \
\text { Labor } & 3.0 \text { hours per unit } @ \$ 8.25 \text { per hour }
\end{array}$

$\begin{array}{ll}
\textbf { Actual: }\
\text { Production } & 3,500 \text { units produced during the month } \
\text { Material } & 14,200 \text { feet used; } 14,700 \text { feet purchased @ } \$ 3.70\text { per foot } \
\text { Labor } & 10,400 \text { direct labor hours } \$ 8.35\text { per hour }
\end{array}$ (Round all answers to the nearest dollar.)
Refer to Reichs Company.What is the material quantity variance?
A)$ 740 F
B)$ 750 F
C)$ 750 U
D)$2,625 U

Question

Reichs Company The following information is for Reichs Company's September production:
$\begin{array}{ll}
\textbf { Standard: }\
\text { Material } & 4.0 \text { feet per unit } @ \$ 3.75 \text { per foot } \
\text { Labor } & 3.0 \text { hours per unit } @ \$ 8.25 \text { per hour }
\end{array}$

$\begin{array}{ll}
\textbf { Actual: }\
\text { Production } & 3,500 \text { units produced during the month } \
\text { Material } & 14,200 \text { feet used; } 14,700 \text { feet purchased @ } \$ 3.70\text { per foot } \
\text { Labor } & 10,400 \text { direct labor hours } \$ 8.35\text { per hour }
\end{array}$ (Round all answers to the nearest dollar.)
Refer to Reichs Company.What is the material quantity variance?
A)$ 740 F
B)$ 750 F
C)$ 750 U
D)$2,625 U

Quizplus · Accepted Answer

The material quantity variance is calculated as (actual quantity used - standard quantity allowed) x standard price per unit. Based on the information provided in the question, the actual quantity used was 4,500 and the standard quantity allowed was 4,000. Therefore, the variance is (4,500 - 4,000) x $0.10 = $50 U.

Reichs Company the Following Information Is for Reichs Company's September