Question

Silmon Corporation makes a product with the following standard costs:

Answer 1

Answer:

Material quantity variance =$74, 280  unfavorable        

Explanation:

The material quantity variance occurs when the actual quantity of material used to achieve a given level of output is more or less than the standard quantity expected.

For Silmon Corporation, it can be computed as follows:

Quantity variance is                                                          

                                                                                        Gram

5,300 units should have used ( 5300× 5.1 )                 27,030

but did used                                                                    39,410

Variance in quantity                                                      12,380 Unfavorable

Price per unit                                                               × $6

Material quantity variance                                         $ 74,280. Unfavorable

   

Material quantity variance =$74, 280  unfavorable