The Cox Company uses standard costing.The following data are available for April: The standard quantity of material allowed for April production is:
A)14,200 gallons
B)12,700 gallons
C)11,700 gallons
D)10,200 gallons

Question

The Cox Company uses standard costing.The following data are available for April:  The standard quantity of material allowed for April production is:
A)14,200 gallons 
B)12,700 gallons 
C)11,700 gallons 
D)10,200 gallons

Quizplus · Accepted Answer

Materials quantity variance = (AQ - SQ)SP
(12,200 gallons - SQ)$4 per gallon = $2,000 U
($48,800 - SQ)F1F1F1S1F1F1F10 $4 per gallon = $2,000 U
SQ F1F1F1S1F1F1F10 $4 per gallon = $46,800
SQ = $46,800 F1F1F1S1F1F1F10 $4 per gallon
SQ = 11,700 gallons

The Cox Company Uses Standard Costing