Question

Tharaldson Corporation makes a product with the following standard costs:

Answer 1

Answer:

Material Quantity Variance= $ 3240 Unfavorable

Explanation:

Given

Standard Quantity   Direct materials 5.8 ounces

Standard Price$ 3.00 per ounce * 5.8= $ 17.40

Actual output 3,400 units

Raw materials used in production 20,800 ounces

Purchases of raw materials 21,900

Working

Standard Material required for  3,400 units *5.8= 19720 ounces.

Standard Price for 19720 ounces* 3= $ 59160

Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

Material Quantity Variance= 3*20,800 - (3* 19720)

Material Quantity Variance= $62400- $ 59160= $ 3240 Unfavorable

It is unfavorable because the actual quantity used is more than the standard usage.