A company uses the following standard costs to produce a single unit of output. During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials quantity variance for the month was:
A)$1,800 favorable
B)$5,800 unfavorable
C)$5,800 favorable
D)$1,800 unfavorable
E)$1,000 favorable

Question

A company uses the following standard costs to produce a single unit of output.  During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials quantity variance for the month was:
A)$1,800 favorable 
B)$5,800 unfavorable 
C)$5,800 favorable 
D)$1,800 unfavorable 
E)$1,000 favorable

Quizplus · Accepted Answer

The Answer of A company uses the following standard costs to produce a single unit of output.  During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials quantity variance for the month was:
A)$1,800 favorable 
B)$5,800 unfavorable 
C)$5,800 favorable 
D)$1,800 unfavorable 
E)$1,000 favorable

A Company Uses the Following Standard Costs to Produce a Single