Gilder Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is:

Question

Gilder Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in June.  The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is:

Quizplus · Accepted Answer

SQ = 5, 500 units × 7.6 grams per unit = 41, 800 grams
Materials quantity variance = (AQ - SQ)× SP
= (39, 200 grams - 41, 800 grams)× $6.00 per gram
= (-2, 600 grams)× $6.00 per gram
= $15, 600 F

Gilder Corporation Makes a Product with the Following Standard Costs