Cox Company's direct material costs for the month of January were as follows: For January there was a favorable direct materials quantity variance of:
A)$3,360
B)$3,375
C)$3,400
D)$3,800

Name: Cox Company's direct material costs for the month of January were as follows: For January there was a favorable direct materials quantity variance of: A)$3,360 B)$3,375 C)$3,400 D)$3,800
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Question

Cox Company's direct material costs for the month of January were as follows:  For January there was a favorable direct materials quantity variance of:
A)$3,360 
B)$3,375 
C)$3,400 
D)$3,800

Quizplus · Accepted Answer

MPV = AQ (AP - SP)
$3,600 = 18,000 ($3.60 - SP)
SP = $3.40
MQV = SP (AQ - SQ)
MQV = $3.40 (15,000 - 16,000)
MQV = $3,400 F

Cox Company's Direct Material Costs for the Month of January