Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units:
Refer to Strong Manufacturing Company. What is the material quantity variance?
A) $275 F
B) $290 F
C) $290 U
D) $275 U

Question

Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units:
 Refer to Strong Manufacturing Company. What is the material quantity variance?
A) $275 F 
B) $290 F 
C) $290 U 
D) $275 U

Quizplus · Accepted Answer

The material quantity variance is calculated as (actual quantity used - standard quantity allowed) x standard price per unit. The standard quantity allowed for the production of 2,100 units is 6,300 pounds (3 pounds per unit). If actual quantity used was 6,000 pounds and the standard price per pound is $0.05, then the material quantity variance would be ($0.05 x (6,000 - 6,300)) = $300 U. Therefore, choice C ($290 U) is the closest answer.

Strong Manufacturing the Following Information Is Available for Strong Manufacturing