The standard cost card for a product shows that the product should use 4 kilograms of material B per finished unit and that the standard price of material B is $4.50 per kilogram.During April,when the budgeted production level was 1,000 units,1,040 units were actually made.A total of 4,100 kilograms of material B were used in production and the inventories of material B were reduced by 300 kilograms during April.The total cost of material B purchased during April was $14,400.The material variances for material B during April were:
A)Option A
B)Option B
C)Option C
D)Option D

Question

The standard cost card for a product shows that the product should use 4 kilograms of material B per finished unit and that the standard price of material B is $4.50 per kilogram.During April,when the budgeted production level was 1,000 units,1,040 units were actually made.A total of 4,100 kilograms of material B were used in production and the inventories of material B were reduced by 300 kilograms during April.The total cost of material B purchased during April was $14,400.The material variances for material B during April were: 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Beginning balance of raw materials + Purchases of raw materials = Materials used in production + Ending balance of raw materials
Purchases of raw materials = Materials used in production + Ending balance of raw materials - Beginning balance of raw materials
Purchases of raw materials = Materials used in production + (Ending balance of raw materials - Beginning balance of raw materials)= 4,100 kilograms + (-300 kilograms)= 3,800 kilograms
Materials price variance = AQ (AP - SP)
= $14,400 - (3,800 kilograms F1F1F1S1F1F1F10 $4.50 per kilogram)
= $14,400 - $17,100 = $2,700 F
Materials quantity variance = (AQ - SQ)SP = AQ F1F1F1S1F1F1F10 SP- SQ F1F1F1S1F1F1F10 SP
= $18,450 - (1,040 units F1F1F1S1F1F1F10 4 kilograms per unit)F1F1F1S1F1F1F10 $4.50 per kilogram
= $18,450 - $18,720 = $270 F

The Standard Cost Card for a Product Shows That the Product