Question

Kahn Performance Nutrition produces a protein shake that contains whey protein as one of its ingredients. The whey protein (materials) standards for each batch of protein shake produced are 12 pounds of whey protein at a standard cost of $3 per pound. During July, Kahn Performance Nutrition purchased and used 54,000 pounds of whey protein at a total of $170,000 to make a total of 4,300 batches of protein shake. What is the materials quantity variance for whey protein in July?

Answer 1

Answer:

The correct answer is "-$7200 (Unfavorable)".

Explanation:

Given:

Actual quantity,

= 54000 pounds

Standard price,

= $3 per pound

Standard quantity,

= $4300\times 12$

= $51600 \ pounds$

As we know,

⇒ $Material \ quantity \ variance=(Standard \ quantity-Actual \ quantity)\times Standard \ price$By substituting the values, we get

⇒                                          $=(51600-54000)\times 3$

⇒                                          $=(-2400)\times 3$

⇒                                          $=-7200 \ (Unfavorable)$