ToolTime has a standard of 1.5 pounds of materials per unit, at $4 per pound. In producing 2,000 units, ToolTime used 3,100 pounds of materials at a total cost of $12,090. ToolTime's materials quantity variance is
A) $90 F.
B) $310 U.
C) $400 U.
D) $700 U.

Question

Quizplus · Accepted Answer

Materials quantity variance = (Standard quantity of materials - Actual quantity of materials) x Standard price per unit

Standard quantity of materials = 1.5 pounds per unit x 2,000 units = 3,000 pounds
Actual quantity of materials = 3,100 pounds

Materials quantity variance = (3,000 - 3,100) x $4 = $400 U (Unfavorable because 3,100 pounds exceed the standard of 3,000 pounds)

ToolTime Has a Standard of 1