Question

Using the information provided, calculate the materials quantity variance.

Standard price:
$3.00 per pound
Actual price:
$3.20 per pound
Actual quantity used:
5,200 pounds
Standard quantity allowed:
5,000 pounds
Multiple choice question.

A.$600 U
B.$640 U
C.$640 F
D.$600 F

Answer 1

The materials quantity variance can be calculated using the formula: Materials Quantity Variance = (Actual Quantity Used - Standard Quantity Allowed) x Standard Price. Given the specific values provided, the materials quantity variance in this scenario is $600.

Step-by-step explanation:

The materials quantity variance can be calculated using the formula:

Materials Quantity Variance = (Actual Quantity Used - Standard Quantity Allowed) x Standard Price

Given that the actual quantity used is 5,200 pounds, the standard quantity allowed is 5,000 pounds, and the standard price is $3.00 per pound, we can substitute these values into the formula:

Materials Quantity Variance = (5,200 - 5,000) x $3.00

Materials Quantity Variance = 200 x $3.00 = $600

Therefore, the materials quantity variance is $600.