Fegox Firinghi (FF) produces flip flops. Each flip-flop requires 2 lbs of Flub and 1 lb of Fleeb, which are planned to cost $8 and $3 per lb. respectively. During the month of May, FF purchased 22,000 lbs of Flub for $194,000 and 13,000 lbs of Fleeb for $42,000. All materials were consumed in producing 10,500 good flip flops. Which is true?
A)The direct material quantity variances total $21,000 fav
B)FF was very efficient in using raw materials to produce their output
C)Direct material quantity variances total $15,500 fav
D)Direct materials quantity variances total $15,500 unfav
E)All of the above are false

Question

Quizplus · Accepted Answer

To calculate the quantity variance, we need to compare the actual amount of materials used to the standard amount of materials that should have been used for the actual output.

Standard amount of Flub needed = 2 lbs per flip flop x 10,500 flip flops = 21,000 lbs
Actual amount of Flub purchased = 22,000 lbs
Quantity variance for Flub = (standard amount - actual amount) x standard price
= (21,000 - 22,000) x $8 = $8,000 unfavorable

Standard amount of Fleeb needed = 1 lb per flip flop x 10,500 flip flops = 10,500 lbs
Actual amount of Fleeb purchased = 13,000 lbs
Quantity variance for Fleeb = (standard amount - actual amount) x standard price
= (10,500 - 13,000) x $3 = $7,500 unfavorable

Total direct materials quantity variance = $8,000 unfavorable + $7,500 unfavorable = $15,500 unfavorable.

Therefore, choice D is correct, and the statement "Direct materials quantity variances total $15,500 unfav" is true.

Fegox Firinghi (FF) Produces Flip Flops