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The standard and actual prices per pound of raw material are 4.00 and 4.50 , respectively. A total of 10,500 pounds of raw material was purchased and then used to produce 5,000 units. The quantity standard allows two pounds of the raw material per unit produced. What is the materials quantity variance? a. 5,000 unfavorable b. 5,000 favorable c. 2,000 favorable d. 2,000 unfavorable

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ahmadfardeen571

The materials quantity variance is  2,000 unfavorable.

Material quantity variance

Standard quantity for actual output x standard price/pound = 5000 units x 2 pounds x $4 = $40000

Actual quantity for actual output x standard price/pound = 10500 pounds  x 4 = $42000

Thus, variance = 40000 - 42000 = $2000 unfavourable

Thus, the answer is (D)

A material quantity variance is a difference between the actual amount of materials used in the production process and the amount that was expected to be used. The measurement is employed to determine the efficiency of a production process in converting raw materials into finished goods.

Learn more about material quantity variance here: https://brainly.com/question/13014675

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