During August, 40,000 units were produced. The standard quantity of material allowed per unit was 5 kg at a standard cost of $2.50 per kilogram. Suppose the company had a favourable usage variance of $25,000. What would have been the actual quantity of materials used?
A) 95,000 kg
B) 105,000 kg
C) 190,000 kg
D) 210,000 kg

Question

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The Answer of During August, 40,000 units were produced. The standard quantity of material allowed per unit was 5 kg at a standard cost of $2.50 per kilogram. Suppose the company had a favourable usage variance of $25,000. What would have been the actual quantity of materials used?
A) 95,000 kg
B) 105,000 kg
C) 190,000 kg
D) 210,000 kg

During August, 40,000 Units Were Produced