Devoto 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 June:

-The raw materials quantity variance for the month is closest to:
A) $77 U
B) $85 F
C) $85 U
D) $77 F

Question

Devoto 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 June:
 
-The raw materials quantity variance for the month is closest to:
A) $77 U 
B) $85 F 
C) $85 U 
D) $77 F

Quizplus · Accepted Answer

SQ = 9,200 units × 6.6 grams per unit = 60,720 grams
Materials quantity variance = (AQ × SP) − (SQ × SP)
= (AQ - SQ) × SP
= (60,710 grams - 60,720 grams) × $7.70 per gram
= -10 grams × $7.70 per gram
= $77 F