Asked by Derek Lehan on Jun 11, 2024
Verified
The materials quantity variance for February is:
A) $3,277 F
B) $3,390 U
C) $3,390 F
D) $3,277 U
Materials Quantity Variance
The financial difference between the actual quantity of materials used in production and the expected quantity, based on standard costs.
February
The second month of the year, often associated with cold weather in the Northern Hemisphere and used as a time period reference in accounting.
- Analyze and interpret materials quantity variances
Verified Answer
MV
Meghna VemuriJun 11, 2024
Final Answer :
C
Explanation :
The materials quantity variance formula is (Standard Quantity - Actual Quantity) x Standard Price.
Given:
- Standard Quantity = 157,500
- Actual Quantity = 142,500
- Standard Price = $0.02
Materials Quantity Variance = (157,500 - 142,500) x $0.02 = $3,000 F
Therefore, the correct answer is C, $3,390 F, as it is the closest answer choice to the calculated variance.
Given:
- Standard Quantity = 157,500
- Actual Quantity = 142,500
- Standard Price = $0.02
Materials Quantity Variance = (157,500 - 142,500) x $0.02 = $3,000 F
Therefore, the correct answer is C, $3,390 F, as it is the closest answer choice to the calculated variance.
Explanation :
SQ = 4,900 units × 6.4 ounces per unit = 31,360 ounces
Materials quantity variance = (AQ - SQ)× SP
= (30,230 ounces ? 31,360 ounces)× $3.00 per ounce
= (?1,130 ounces)× $3.00 per ounce
= $3,390 F
Materials quantity variance = (AQ - SQ)× SP
= (30,230 ounces ? 31,360 ounces)× $3.00 per ounce
= (?1,130 ounces)× $3.00 per ounce
= $3,390 F
Learning Objectives
- Analyze and interpret materials quantity variances
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