Stone Lamps Company produces lamps with granite bases.The standard material cost for the granite used in each lamp is $20 per square foot.Each lamp requires 2 square feet of granite.In November,the company produced 500 lamps.There were 1,150 square feet of granite used during the month.The granite used had an actual cost $22 per square foot.What was the materials efficiency (quantity)variance in November for granite?

Question

Quizplus · Accepted Answer

The materials efficiency variance is calculated as (Actual Quantity - Standard Quantity) x Standard Cost. The standard quantity for 500 lamps is 1,000 square feet (500 lamps x 2 square feet per lamp). The actual quantity used was 1,150 square feet. The variance is (1,150 - 1,000) x $20 = $3,000 unfavorable.

Stone Lamps Company Produces Lamps with Granite Bases