Ask Question
26 May, 11:27

Degregorio Corporation makes a product that uses a material with the following direct material standards:

Standard quantity 3.7 kilos per unit

Standard price $5 per kilo

The company produced 6,300 units in November using 23,780 kilos of the material. During the month, the company purchased 25,950 kilos of the direct material at a total cost of $124,560. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for November is:

A. $2,350 F

B. $2,256 F

C. $2,350 U

D. $2,256 U

+4
Answers (1)
  1. 26 May, 15:23
    0
    Materials quantity variance = $2,350 F

    Explanation:

    Given:

    Standard quantity = 3.7 kilos per unit

    Standard price = $5 per kilo

    Unit produced = 6,300

    Total material = 23,780

    Computation:

    Materials quantity variance = (Actual quantity * Standard price) - (Standard quantity * Standard price)

    Materials quantity variance = (23,780 * $) - (6,300 * 3.7 * $5)

    Materials quantity variance = $118,900 - $116,550

    Materials quantity variance = $2,350 F
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.7 kilos per ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers