During September, 40,000 units were produced.The standard quantity of material allowed per unit was 5 pounds at a standard cost of $2.50 per pound.If there was a favorable usage variance of $25,000 for September, the actual quantity of materials used must have been
A) 210,000 pounds.
B) 190,000 pounds.
C) 105,000 pounds.
D) 95,000 pounds.

Question

Quizplus · Accepted Answer

40,000 × 5 × $2.50 = $500,000
$500,000 - $25,000 = $475,000
$475,000 / $2.50 = 190,000 pounds

During September, 40,000 Units Were Produced