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Angelina_Jolie [31]
4 years ago
10

The standard quantity allowed for the units produced was 4000 pounds, the standard price was $2.50 per pound, and the materials

quantity variance was $350 favorable. Each unit uses 1 pound of materials. How many units were actually produced
Business
1 answer:
Anika [276]4 years ago
6 0

Answer:

Unites actually produced = 4,000 units

Explanation:

M<em>aterial quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.  </em>

<em>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  </em>

Material quantity variance in unit =  Materials quantity variance  in value /standard price

Material quantity variance in unit = 350/2.50 =140  pounds

Actual quantity used (in pounds)  = standard quantity allowed - Material quantity variance

                              = 4000  - 140 = 3,860 pounds

Actual units produced = Standard quantity allowed/ standard quantity  per unit

                                      = 4,000/1 = 4000 units

Unites actually produced = 4,000 units

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