TB MC Qu. 10-63 (Static) ABC Corporation makes a product that uses a ... ABC Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.8 pounds per unit Standard price $4.00 per pound The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:

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Answer:

the  materials quantity variance for November is $3,880 unfavorable

Explanation:

The computation of the  materials quantity variance for November is shown below:

As we know that

Material Quantity variance is

= Standard Price × (Actual Quantity used - Standard Quantity)

= $4 × (28,710 - (7,300 units × $3.8 per pound))

= $4 × (28,710 - 27,740)

= $3,880 unfavorable

hence, the  materials quantity variance for November is $3,880 unfavorable