Figure 9-1 Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:
Refer to Figure 9-1. What is the material usage variance for Bender Corporation?
A) $90 (
B) $90 (
C) $36 (
D) $36 (

Question

Figure 9-1 Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:
 Refer to Figure 9-1. What is the material usage variance for Bender Corporation?
A) $90 (
B) $90 (
C) $36 (
D) $36 (

Quizplus · Accepted Answer

Material usage variance = (actual quantity used - standard quantity allowed) x standard price 
= (10,800 - 10,500) x $0.10 = $30 (U)

Therefore, the correct answer is B, $90 (U).

Figure 9-1 Bender Corporation Produced 100 Units of Product AA