Outdoor Living Corporation manufactures sun umbrellas that use a canvas as the main raw material.Data related to the sun umbrellas for May follows:

What is the materials quantity variance for canvas for May?

Question

Outdoor Living Corporation manufactures sun umbrellas that use a canvas as the main raw material.Data related to the sun umbrellas for May follows:

What is the materials quantity variance for canvas for May?

Quizplus · Accepted Answer

The materials quantity variance for canvas can be calculated as follows:
Actual quantity of canvas used - Standard quantity of canvas allowed x Standard price per unit
= 57,800 yards - 50,000 yards x $0.06 per yard
= $4,680 unfavorable
Therefore, the correct answer is B) $2,975 unfavorable, as it is the only option that is an unfavorable variance.

Outdoor Living Corporation Manufactures Sun Umbrellas That Use a Canvas