Ultimate Production manufactures radon detectors.The standard for materials for each detector is 2 pounds of acrylic at a standard cost of $4.30 per pound.During May, the company purchased 890 pounds and used 830 pounds of acrylic and made 410 radon detectors.The company paid $4.45 per pound for the acrylic.There were 400 detectors budgeted for May.How much is the material quantity variance?
A)$134 unfavorable
B)$43 unfavorable
C)$177 unfavorable
D)$263 unfavorable

Question

Quizplus · Accepted Answer

The material quantity variance is calculated as (Actual Quantity - Standard Quantity) x Standard Price. The standard quantity for 410 detectors is 2 pounds per detector, so 820 pounds. The actual quantity used is 830 pounds. The standard price is $4.30 per pound. Therefore, the variance is (830 - 820) x $4.30 = 10 x $4.30 = $43 unfavorable.

Ultimate Production Manufactures Radon Detectors