The Following Materials Standards Have Been Established for a Particular

question 404

Multiple Choice

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month:
What is the materials quantity variance for the month?

• A) $9,940 Unfavorable
• B) $15,351 Unfavorable
• C) $14,484 Unfavorable
• D) $10,535 Unfavorable

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Definitions:

Variable Manuf. Overhead

Costs that vary with production volume, such as utilities and materials used in manufacturing.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.

Variable Manufacturing Overhead

Indirect manufacturing costs that vary with the production volume, such as utilities for machinery.

Standard Costs

Pre-determined or estimated costs used for planning and control purposes, often used to measure performance by comparing them with actual costs.