Question

If Preble had purchased 188,000 pounds of materials at $7.20 per pound and used 170,000 pounds in production, what would be the materials quantity variance for March?

Answer 1

f Preble had purchased 188,000 pounds of materials at $7.20 per pound and used 170,000 pounds in production, what would be the materials quantity variance for March?

                                                                        Standard cost

Direct Material: 6  pounds at  $8 per pound   48

Direct labour    :4 hours at  $13 per hour          52

Variable overhead  4 hours at $5 per hour       20

The planning budget for  for March is to produce and sell   20,000 units but the However during March the company actually produce 25,500 units

Answer:

Material quantity Variance   =$122,400 unfavorable

Explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price

                                                                                             Pounds

25,500 should have used  (25,500× 6)                       153,000

but did use                                                                       170,000

Quantity variance                                                              17,000

Standard price                                                             ×     $7.20

Material quantity Variance                                             $122,400 unfavorable

Material quantity Variance   =$122,400