The Cheers Company makes mugs for which the following standards have been developed: Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct material quantity variance for July?
A)$200 Favorable
B)$200 Unfavorable
C)$220 Favorable
D)$220 Unfavorable

Question

The Cheers Company makes mugs for which the following standards have been developed:  Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct material quantity variance for July?
A)$200 Favorable 
B)$200 Unfavorable 
C)$220 Favorable 
D)$220 Unfavorable

Quizplus · Accepted Answer

The Answer of The Cheers Company makes mugs for which the following standards have been developed:  Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct material quantity variance for July?
A)$200 Favorable 
B)$200 Unfavorable 
C)$220 Favorable 
D)$220 Unfavorable

The Cheers Company Makes Mugs for Which the Following Standards