Luma Inc. has provided the following data concerning one of the products in its standard cost system.
The company has reported the following actual results for the product for September:

-The materials quantity variance for November is:
A) $3,880 F
B) $3,686 U
C) $3,686 F
D) $3,880 U

Question

Luma Inc. has provided the following data concerning one of the products in its standard cost system.
  The company has reported the following actual results for the product for September:
 
-The materials quantity variance for November is:
A) $3,880 F 
B) $3,686 U 
C) $3,686 F 
D) $3,880 U

Quizplus · Accepted Answer

SQ = 7,300 units × 3.8 pounds per unit = 27,740 pounds
Materials quantity variance = (AQ - SQ) × SP
= (28,710 pounds − 27,740 pounds) × $4.00 per pound
= (970 pounds) × $4.00 per pound
= $3,880 U

Luma Inc Has Provided the Following Data Concerning One of the the Products