An unfavorable materials quantity variance indicates that the actual usage of materials exceeds the standard material allowed for output.
<h3>What do you mean by material quantity variance?</h3>
The material quantity variance refers to the difference between the standard amount and the actual amount of materials used in the production process.
The material quantity variance yield unusual results as it is based on a standard unit quantity that is not even close to the actual usage.
Therefore, an unfavorable materials quantity variance indicates that the actual usage of materials exceeds the standard material allowed for output.
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Answer:
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Answer:
determines the level of interactions and responsibilities associated with employees and managers.
Explanation:
Answer:
A. $45,950
B. $0.84 per liter.
Explanation:
A. February conversion costs in the Filtration Department:
= Direct labor costs(Wages of workers operating filtration equipment) + Manufacturing overhead allocated to filtration
= $25,950 + $20,000
= $45,950
B. Filtration Department completely processed 150,000 liters in February.
Total cost incurred:
= Direct labor costs + Manufacturing overhead allocated to filtration + Water
= $25,950 + $20,000 + $80,000
= $125,950
Filtration cost per liter:
= Total cost incurred ÷ Total units processed
= $125,950 ÷ 150,000
= $0.84 per liter.