Snodgrass and Payne Limited's materials budget for April 20X4 comprised 6 metres of raw material at a standard cost of £2.30 per metre for each unit produced and sold.Actual sales and production for the month was 680 units.The outturn was that 6.20 metres of raw material were used for each unit at a cost of £2.40 per metre. What was the materials quantity variance for April 20X4?

Question

Quizplus · Accepted Answer

The materials quantity variance is calculated as (Standard Quantity - Actual Quantity) x Standard Price. The standard quantity for 680 units is 680 x 6 = 4080 metres. The actual quantity used is 680 x 6.20 = 4216 metres. The variance is (4080 - 4216) x £2.30 = -£312.80, which is adverse (A).

Snodgrass and Payne Limited's Materials Budget for April 20X4 Comprised