A company manufactures a product that required three types of material: Material
ID: 2589839 • Letter: A
Question
A company manufactures a product that required three types of material: Material A, Material B, and Material C. The materials are substitutable to some degree and the company does experience some variance in the mbx of materials that go into the final product Information for production for the month of April are provided below. The company produced 10,000 units of output in April DATA FOR MATERIALS USED TO MANUFACTURE COMPANY PRODUCT FOR MONTH OF APRIL Standard Quantity Per Unit of Output Total Actual Standard Price Per Quantity Used Unit of Input Material A 45,000 S 2.00 Material B 35,000 3.00 Material C 30,000 5.00 What is the quantity variance for Material C? Select one a $50,000 u b, 510.000 U. Oc. $40,000 U d. S10.000 FExplanation / Answer
Answer = 50,000 Unfavourable
Standard price per unit of input = 5
Actual quantity used = 30,000
Standard quantity allowed = output * Standard quantity per unit of output
= 10,000 units * 2 per unit of output
= 20,000
Quantity Variance = (SQ - AQ) * SP
= (20,000 - 30,000) * 5
= (50,000)