Degregorio Corporation makes a product that uses a material with the following direct material standards: The company produced 5,600 units in November using 21,750 kilos of the material.During the month,the company purchased 24,800 kilos of the direct material at a total cost of $168,640.The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:

Question

Degregorio Corporation makes a product that uses a material with the following direct material standards:  The company produced 5,600 units in November using 21,750 kilos of the material.During the month,the company purchased 24,800 kilos of the direct material at a total cost of $168,640.The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:

Quizplus · Accepted Answer

SQ = 5,600 units × 3.8 kilos per unit = 21,280 kilos
Materials quantity variance = (AQ - SQ)× SP
= (21,750 kilos - 21,280 kilos)× $7.00 per kilo
= (470 kilos)× $7.00 per kilo
= $3,290 U

Degregorio Corporation Makes a Product That Uses a Material with the Following