The following materials standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

The direct materials purchases variance is computed when the materials are purchased.
-What is the materials quantity variance for the month?
A)$1,260 U
B)$1,309 U
C)$11,220 U
D)$10,800 U

Question

The following materials standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

The direct materials purchases variance is computed when the materials are purchased.
-What is the materials quantity variance for the month?
A)$1,260 U 
B)$1,309 U 
C)$11,220 U 
D)$10,800 U

Quizplus · Accepted Answer

The materials quantity variance is calculated as the difference between the actual quantity used and the standard quantity allowed, multiplied by the standard price. The correct variance is $1,260 unfavorable (U).

The Following Materials Standards Have Been Established for a Particular