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Home Company Manufactures Tables with Vinyl Tops

Question 32

Multiple Choice

Home Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per Type-R table is £7.80 based on six square feet of vinyl at a cost of £1.30 per square foot. A production run of 1,000 tables in January resulted in usage of 6,400 square feet of vinyl at a cost of £1.20 per square foot, a total cost of £7,680. The quantity variance resulting from the above production run was


A) £120 favourable.
B) £480 unfavourable.
C) £520 unfavourable.
D) £640 favourable.

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