Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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 April is:

Question

Berends Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in April.  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 April is:

Quizplus · Accepted Answer

SQ = 8,800 units × 9.2 pounds per unit = 80,960 pounds
Materials quantity variance = (AQ - SQ)× SP
= (78,150 pounds − 80,960 pounds)× $3.00 per pound
= (−2,810 pounds)× $3.00 per pound
= $8,430 F

Berends Corporation Makes a Product with the Following Standard Costs