The standard cost card for a product indicates that one unit of the product requires 8...

The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram. The production of the product in April was 870 units, but production had been budgeted for 850 units. During April, 7,150 kilograms of the raw material were purchased for $5,577. All the kilograms of the raw material purchased were used in production. What was the materials quantity variance?

		$152 F
		$152 U
		$280 F
		$280 U

Expert Solution


Particulars	Per one unit of output	× actual output	Total
Standard raw materials units required per unit of output	8.00	870.00	6,960.00
Less: actual raw materials units used per unit of output			7,150.00
Difference in raw materia units used			(190.00)
× standard price per unit of raw material			$ 0.80
Direct material quantity variance	-		$ (152.00)

Summary
Particulars	Amount	Nature
Materials quanity variance	$ (152.00)	Unfavorable

ekkarill92 answered 2 years ago

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