Standard Gears Produces Lawn Mower Gears What Is the Direct Material Quantity Variance?
A) $465 Favorable

question 91

Multiple Choice

Standard Gears produces lawn mower gears. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system:
$\begin{array}{ll}\text { Actual Data }&\text { Budgeted and Standard Data }\\\begin{array}{|l|c|}\hline \text { Produced } & 12,400 \text { units } \\\hline \text { Materials purchased } & 4,650 \text { lbs. for a total cost of } \$ 32,550 \\\hline \text { Materials used } & 4,700 \text { lbs. } \\\hline \text { Labor worked } & 7,460 \mathrm{hrs} \text {. costing } \$ 79,822 \\\hline \text { Actual overhead } & \text { Fixed: } \$ 84,800 \\&\text { Variable } \$ 36,100\\\hline\end{array}&\begin{array}{|l|c|}\hline \text { Budgeted units } & 12,500 \text { units } \\\hline \text { Budgeted materials } & 0.401 \mathrm{1b} @ \$ 7.10 \text { per } 1 \mathrm{~b} . \\\hline \text { Budgeted labor } & 36 \text { minutes @ } \$ 11.00 \text { per hour } \\\hline \text { Budgeted variable overhead } & \$ 35,625 \\\hline \text { Budgeted fixed overhead } & \$ 85,500\\\\\hline \end{array}\end{array}$
What is the direct material quantity variance?

• A) $465 favorable
• B) $1,846 favorable
• C) $470 favorable
• D) $2,201 favorable

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Definitions:

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Westberg Model

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