During November, Rubix Company produced 10,000 units. The standard quantity of material allowed per unit was 10 kg at a standard cost of $3 per kilogram. Suppose the company had an unfavourable usage variance of $18,750 for November. What would have been the actual quantity of materials used?
A) 23,438 kg
B) 31,875 kg
C) 93,750 kg
D) 106,250 kg

Question

Quizplus · Accepted Answer

The standard quantity of material allowed is 10,000 units * 10 kg/unit = 100,000 kg. The usage variance is calculated as (Actual Quantity - Standard Quantity) * Standard Cost. Given an unfavorable variance of $18,750, we solve for Actual Quantity: (Actual Quantity - 100,000 kg) * $3 = $18,750, which gives Actual Quantity = 106,250 kg.

During November, Rubix Company Produced 10,000 Units