Question

Use the following to answer questions 8-10: Dudley, Inc. makes a single product which has the following standards: · Direct materials: 2 kilograms at $4.30 per kilogram · Direct labor: 3 hours at $6 per hour · Variable manufacturing overhead: $19.50 per unit of output At the beginning of June there were no inventories. The following data pertain to June's operations: · Direct labor was $820,500 for 147,000 hours worked. · Direct material purchases were 110,000 kilograms for $485,000. · Variable manufacturing overhead incurred was $986,000. · 92,000 kilograms of direct materials were used. · The company sold 42,000 units at $130 each. · Variable manufacturing overhead is applied based on direct labor hours. · 46,000 units were produced during the year. 9. The material quantity variance is: A) $77,400 U B) $0 C) $14,800 F D) $14,800 U

Answer 1

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Standards:

Direct materials: 2 kilograms at $4.30 per kilogram.

The following data pertain to June's operations:

Direct material purchases were 110,000 kilograms for $485,000. 92,000 kilograms of direct materials were used.

Standard= 92,000/2= 46,000 units

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (46,000 - 46,000)*4.30=0