Doogan Corporation makes a product with the following standard costs: The company produced 5,000 units in January using 10,310 grams of direct material and 2,290 direct labor-hours. During the month, the company purchased 10,880 grams of the direct material at $7.10 per gram. The actual direct labor rate was $11.70 per hour and the actual variable overhead rate was $3.00 per hour.The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for January is:
A) $2,170 Favorable
B) $2,201 Unfavorable
C) $2,201 Favorable
D) $2,170 Unfavorable

Question

Doogan Corporation makes a product with the following standard costs:  The company produced 5,000 units in January using 10,310 grams of direct material and 2,290 direct labor-hours. During the month, the company purchased 10,880 grams of the direct material at $7.10 per gram. The actual direct labor rate was $11.70 per hour and the actual variable overhead rate was $3.00 per hour.The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for January is:
A) $2,170 Favorable 
B) $2,201 Unfavorable 
C) $2,201 Favorable 
D) $2,170 Unfavorable

Quizplus · Accepted Answer

The Answer of Doogan Corporation makes a product with the following standard costs:  The company produced 5,000 units in January using 10,310 grams of direct material and 2,290 direct labor-hours. During the month, the company purchased 10,880 grams of the direct material at $7.10 per gram. The actual direct labor rate was $11.70 per hour and the actual variable overhead rate was $3.00 per hour.The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for January is:
A) $2,170 Favorable 
B) $2,201 Unfavorable 
C) $2,201 Favorable 
D) $2,170 Unfavorable

Doogan Corporation Makes a Product with the Following Standard Costs