The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month?

Question

The following materials standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month?

Quizplus · Accepted Answer

SQ = 2, 700 units × 1.9 grams per unit = 5, 130 grams
Materials quantity variance = (AQ - SQ)× SP
= (5, 200 grams - 5, 130 grams)× $18.00 per gram
= (70 grams)× $18.00 per gram
= $1, 260 U

The Following Materials Standards Have Been Established for a Particular