The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?
A)$19,460 F
B)$9,730 U
C)$10,115 U
D)$20,230 F

Question

The following materials standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the materials quantity variance for the month?
A)$19,460 F 
B)$9,730 U 
C)$10,115 U 
D)$20,230 F

Quizplus · Accepted Answer

SQ = 7.3 pounds per unit F1F1F1S1F1F1F10 1,000 units = 7,300 pounds
Materials quantity variance = (AQ - SQ)SP
= (5,900 pounds - 7,300 pounds)$14.45 per pound
= (-1,400 pounds)$14.45 per pound = $20,230 F

The Following Materials Standards Have Been Established for a Particular