Ask Question
3 October, 10:15

Underwood Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:

+3
Answers (1)
  1. 3 October, 13:54
    0
    -$300 Unfavorable

    Explanation:

    The computation of materials quantity variance for January is shown below:-

    For computing the materials quantity variance for January first we need to find out the Standard quantity of material which is here below:-

    Standard quantity of material for 3400 units will be: 3400 * 7.3

    = 24,820 grams

    Material Quantity Variance = Standard Price * (Standard Quantity - Actual Quantity)

    $6.00 * (24,820 grams - 24,870 grams)

    = $ 6 * (-50 grams)

    = - $300 Unfavorable

    Therefore we have applied the above formula.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Underwood Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price ...” 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