Grub Chemical Corporation has developed cost standards for the production of its new cologne, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO: Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual results for last month were as follows:
What is ChocO's materials (milk chocolate) quantity variance?

Question

Grub Chemical Corporation has developed cost standards for the production of its new cologne, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO:  Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual results for last month were as follows:
 What is ChocO's materials (milk chocolate) quantity variance?

Quizplus · Accepted Answer

SQ = 3,800 units × 2.0 pounds per unit = 7,600 pounds
Materials quantity variance = (AQ − SQ) × SP
= (7,880 pounds − 7,600 pounds) × $0.85 per pound
= (280 pounds) × $0.85 per pound
= $238 U

Grub Chemical Corporation Has Developed Cost Standards for the Production