During November, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was an unfavorable usage variance of $18,750 for November, the actual quantity of materials used must be
A)23,438 pounds.
B)93,750 pounds.
C)31,875 pounds.
D)106,250 pounds.

Question

Quizplus · Accepted Answer

The standard quantity allowed is 10,000 units * 10 pounds = 100,000 pounds. An unfavorable usage variance of $18,750 means more materials were used than the standard. The variance in pounds is $18,750 / $3 = 6,250 pounds. Therefore, the actual quantity used is 100,000 + 6,250 = 106,250 pounds.

During November, 10,000 Units Were Produced