Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1,200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is:

Question

Beakins Corporation produces a single product.The standard cost card for the product follows:  During a recent period the company produced 1,200 units of product.Various costs associated with the production of these units are given below:  The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is:

Quizplus · Accepted Answer

SQ = 1,200 units × 4 yards per unit = 4,800 yards
Materials quantity variance = (AQ - SQ)× SP
= (5,000 yards - 4,800 yards)× $5 per yard
= (200 yards)× $5 per yard
= $1,000 U

Beakins Corporation Produces a Single Product