Fegox Firinghi (FF)produces flip flops.Each flip-flop requires 2 pounds of Flub and 1 pound of Fleeb,which are planned to cost $8 and $3 per pound respectively.During the month of May,FF purchased 22,000 pounds of Flub for $179,900 and 13,000 pounds of Fleeb for $42,000.All materials were consumed in producing 10,500 good flip flops. Which is true?

Question

Quizplus · Accepted Answer

The direct materials quantity variance is calculated by comparing the actual quantity of materials used to the standard quantity allowed for the actual output, then multiplying the difference by the standard cost per unit. For Flub, the standard quantity allowed is 2 pounds per flip-flop times 10,500 flip-flops, equaling 21,000 pounds. FF used 22,000 pounds, which is 1,000 pounds more than the standard, at a standard cost of $8 per pound, resulting in an $8,000 unfavorable variance. For Fleeb, the standard quantity allowed is 1 pound per flip-flop times 10,500 flip-flops, equaling 10,500 pounds. FF used 13,000 pounds, which is 2,500 pounds more than the standard, at a standard cost of $3 per pound, resulting in a $7,500 unfavorable variance. Adding both variances gives a total direct materials quantity variance of $15,500 unfavorable.

Fegox Firinghi (FF)produces Flip Flops