The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram.The production of the product in April was 870 units,but production had been budgeted for 850 units.During April,8,200 kilograms of the raw material were purchased for $6,888 and 7,150 kilograms of the raw material were used in production.The material variances for April were:

Question

Quizplus · Accepted Answer

Materials price variance = (AQ × AP)- (AQ × SP)
= $6,888 - (8,200 kilograms × $0.80 per kilogram)
= $6,888 - $6,560
= $328 U
Materials quantity variance = (AQ - SQ)× SP
= [7,150 kilograms - (870 units × 8 kilograms per unit)] × $0.80 per kilogram
= [7,150 kilograms - (6,960 kilograms)] × $0.80 per kilogram
= [190 kilograms] × $0.80 per kilogram
= $152 U

The Standard Cost Card for a Product Indicates That One