Compound K52E is a raw material used to make Pinkos Corporation's major product.The standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per unit of output.Data concerning the compound for March appear below: The raw material was purchased on account. The Materials Quantity Variance for March would be recorded as a:

Question

Compound K52E is a raw material used to make Pinkos Corporation's major product.The standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per unit of output.Data concerning the compound for March appear below:  The raw material was purchased on account. The Materials Quantity Variance for March would be recorded as a:

Quizplus · Accepted Answer

SQ = 800 units × 5.0 ounces per unit = 4,000 ounces
Materials quantity variance = (AQ - SQ)× SP
= (3,570 ounces - 4,000 ounces)× $46.00 per ounce
= (-430 ounces)× $46.00 per ounce
= $19,780 F
A favorable variance is credite

Compound K52E Is a Raw Material Used to Make Pinkos