Moose Company recently produced 60,000 units of a product that was expected to consume 3 litres of direct material per finished unit. The standard price of the direct material was $8.00 per litre. If the firm purchased and consumed 186,000 litres in manufacturing (cost = $1,534,500), the direct-material quantity variance would be:

Question

Quizplus · Accepted Answer

The Answer of Moose Company recently produced 60,000 units of a product that was expected to consume 3 litres of direct material per finished unit. The standard price of the direct material was $8.00 per litre. If the firm purchased and consumed 186,000 litres in manufacturing (cost = $1,534,500), the direct-material quantity variance would be:

Moose Company Recently Produced 60,000 Units of a Product That