The Cornell Company makes tables for which the following standards have been developed:
$\begin{array}{lll}&\text { Standard Inputs Expected }&\text { Standard Price }\
\text { Expected }&\text { For Each Unit of Output }&\text { Per Unit of Input }\\hline
\text { Direct Materials } & 10 \text { ounces } & \$4 \text { per ounce } \
\text { Direct Labor } & 3 \text { hours } & \$ 16 \text { per hour }
\end{array}$
Production of 200 tables was expected in July,but 220 tables were actually completed.Direct materials purchased and used were 2,000 pounds at an actual price of $4.40 per pound.Direct labor cost for the month was $10,620,and the actual pay per hour was $18.00.What is the direct material quantity variance for July?
A) $800 Favorable
B) $800 Unfavorable
C) $880 Favorable
D) $880 Unfavorable

Question

Quizplus · Accepted Answer

The direct material quantity variance is calculated as follows:Standard quantity = 10 ounces per table * 220 tables = 2,200 ouncesActual quantity = 2,000 pounds * 16 ounces per pound = 32,000 ouncesQuantity variance = (Standard quantity - Actual quantity) * Standard price= (2,200 ounces - 32,000 ounces) * $4 per ounce= $800 Favorable

The Cornell Company Makes Tables for Which the Following Standards