Question

The following materials standards have been established for a particular product: Standard quantity per unit of output 4.6 grams Standard price $15.05 per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased 3,100 grams Actual costs of materials purchased $44,020 Actual materials used in production 2,400 grams Actual output 300 units What is the materials quantity variance for the month?

Answer 1

Answer:

15,351.00 unfavourable

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

                                                                                              gram

300 units should have used (300× 4.6)                             1380

but did used                                                                        2,400

                                                                                           1020

Standard price                                                                   × 15.05

Material quantity variance                                         15,351.00 unfavourable