If the Standard Quantity of Materials Is 84,500 Units @

question 62

Multiple Choice

If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit,then the materials quantity variance is:

• A)$2,850 Favorable.
• B)$1,575 Unfavorable.
• C)$1,275 Favorable.
• D)$2,850 Unfavorable.

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Definitions:

Standard Hours

The allocated time that is expected to be required to complete a specific task or job in a manufacturing or project environment.

December's Production

The total output or number of units produced by a company or factory during the month of December.

Variable Overhead Efficiency Variance

A metric used to assess the efficiency of variable overhead resource utilization by comparing the actual hours worked to the standard hours allowed for the actual output.

Variable Manufacturing Overhead

Costs of manufacturing overhead that vary with the level of production activity, such as utility costs.