The Armstrong Corporation developed a flexible budget for its production process.Armstrong budgeted to use 16,000 pounds of direct material with a standard cost of $18 per pound to produce 12,000 units of finished product.Armstrong actually purchased 18,000 pounds and used 17,000 pounds of direct material with a cost of $21 per pound to produce 12,000 units of finished product.
Given these results,what is Armstrong's direct material quantity variance?

Question

Quizplus · Accepted Answer

D)
Material Quantity Variance = (Actual Quantity (AQ)used - Standard Quantity Allowed (SQA))× Standard Price (SP)
$18,000 U = (17,000 - 16,000)× 18.00

The Armstrong Corporation Developed a Flexible Budget for Its Production