Magno Cereal Corporation Uses a Standard Cost System for Its

question 260

Multiple Choice

Magno Cereal Corporation uses a standard cost system for its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for August?

• A) $1,500 Unfavorable
• B) $18,000 Favorable
• C) $19,500 Unfavorable
• D) $54,000 Unfavorable

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