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Alex17521 [72]
3 years ago
4

Leonesio Corporation makes a product that uses a material with the following standards:

Business
1 answer:
beks73 [17]3 years ago
5 0

Answer:

$5440 Unfavorable

Explanation:

Given that

Actual production = 3,200 units

Actual quantity = 27,600 kilos

Standard price  = $4.00 per kilos

Standard quantity  = 8.2 kilos per unit

The computation of materials quantity variance is given below:-

= (Standard quantity - Actual quantity) × Standard price

= (26,240 kilos - 27,600 kilos) × $4.00 per kilos

= $5440 Unfavorable

So,

Standard quantity = Actual production × Standard quantity

= 3,200 units × 8.2 kilos per unit

=26,240 kilos

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