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:
<em>Material 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>
Pounds
25,500 should have used (25,500× 6) 153,000
but did use <u> 170,000</u>
Quantity variance 17,000
Standard price × <u> $7.20</u>
Material quantity Variance <u> $122,400 </u>
unfavorable
Material quantity Variance =$122,400
