Reference: 11-07 The Following Materials Standards Have Been Established for a Particular

question 1

Multiple Choice

Reference: 11-07
The following materials standards have been established for a particular product:
Standard quantity per unit of output: 4.4 grams
Standard price: $13.20 per gram
The following data pertain to operations concerning the product for the last month: Actual materials purchased: 4,800 grams
Actual cost of materials purchased: $62,880
Actual materials used in production: 4,300 grams
Actual output: 700 units
-What is the materials quantity variance for the month?

• A)$6,600 U.
• B)$6,550 U.
• C)$15,982 U.
• D)$16,104 U.

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Definitions:

Supplies

Items used in the operation of a business, often consumable, like stationery, raw materials, or maintenance supplies.

Utilities Expense

The cost incurred by businesses for basic services such as water, electricity, gas, and telecommunications.

Office Supplies

Items used regularly in an office for writing, printing, filing, or cleaning, regarded as consumable materials.

Journalize

The act of documenting monetary transactions within a journal during a stage in the accounting cycle.