Question

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

Standard quantity 8.4 liters per unit
Standard price $2.90 per liter
Standard cost $24.36 per unit
The company budgeted for production of 4,200 units in April, but actual production was 4,300 units. The company used 37,000 liters of direct material to produce this output. The company purchased 20,500 liters of the direct material at $3.0 per liter. The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for April is:__________

Answer 1

the materials quantity variance for April is $2,552 unfavorable

Step-by-step explanation:

The computation of the materials quantity variance for April is shown below:

= (standard quantity - actual quantity) × standard rate

= (4,300 units × 8.4 liters - 37,000 liters) × $2.90

= (36,120 liters - 37,000 liters) × $2.90

= 880 liters × $2.90

= $2,552 unfavorable

hence, the materials quantity variance for April is $2,552 unfavorable

The same is followed