Materials Quantity Variance: Solving for Actual Quantity

question 13

Essay

Materials Quantity Variance: Solving for Actual Quantity
Toddca planned to produce 3,000 units of its single product, Terrgam, during November. The standard specifications for one unit of Terrgam include six pounds of material at $0.30 per pound. Actual production in November was 3,100 units of Terrgam. The accountant computed a favorable materials purchase price variance of $380 and an unfavorable materials quantity variance of $120.
Required:
Based on these data, calculate how many pounds of material were used in the production of Terrgam during November.

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Definitions:

Factor Risk

The risk associated with a specific factor or factors that can affect the performance of an investment portfolio, unrelated to broader market movements.

Risk Premium

The additional return expected by an investor for accepting a higher level of risk compared to a risk-free asset.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification alone, also known as market risk.

Equilibrium-Price Relationship

The point at which the supply of a good matches its demand, resulting in a stable market price.