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

question 187

Multiple Choice

Imrie Corporation makes a product that uses a material with the quantity standard of 9.5 grams per unit of output and the price standard of $5.00 per gram. In January the company produced 2,900 units using 26,940 grams of the direct material. During the month the company purchased 28,900 grams of the direct material at $4.90 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:

• A)$2,989 F
• B)$3,050 F
• C)$2,989 U
• D)$3,050 U

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