Gipple Corporation Makes a Product That Uses a Material with the Quantity

question 91

Multiple Choice

Gipple Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for January is:

• A) $305 Unfavorable
• B) $300 Unfavorable
• C) $300 Favorable
• D) $305 Favorable

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