Bonita Industries has a materials price standard of $2.00 per pound. 4600 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 4600 pounds, although the standard quantity allowed for the output was 3400 pounds. Bonita Industries's materials quantity variance is

Total Materials Variance = $3320

Explanation:

given data

materials price standard = $2.00 per pound

materials purchased = 4600

purchased at = $2.20 a pound

actual quantity materials used = 4600 pounds

standard quantity allowed output = 3400 pounds

to find out

Bonita Industries's materials quantity variance

solution

we get here Total Materials Variance that is express as

Total Materials Variance = Actual Quantity * Actual Rate - Standard Quantity * Standard Rate ... 1

put here value we get

Total Materials Variance = 4600 * 2.20 - 3400 * 2

Total Materials Variance = $3320