Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown.
STANDARD COST CARD

The company reported the following results concerning January:

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The material quantity variance for Flannel used in January is:

Question

Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown.
STANDARD COST CARD

The company reported the following results concerning January:

-
The material quantity variance for Flannel used in January is:

Quizplus · Accepted Answer

The material quantity variance is calculated as the difference between the standard quantity of materials that should have been used for the actual output and the actual quantity used, multiplied by the standard cost per unit of material. An unfavorable variance occurs when the actual quantity used is greater than the standard quantity expected to be used, indicating inefficiency. Without specific numbers provided in the question, the correct answer cannot be directly calculated here, but based on the options given, if the variance is identified as unfavorable, it means more materials were used than planned, costing $2,700 more than expected.