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4 March, 11:31

Degregorio Corporation makes a product that uses a material with the following direct material standards:

Standard quantity 3.7 kilos per unit

Standard price $5 per kilo

The company produced 6,300 units in November using 23,780 kilos of the material. During the month, the company purchased 25,950 kilos of the direct material at a total cost of $124,560. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for November is:

A. $2,350 F

B. $2,256 F

C. $2,350 U

D. $2,256 U

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Answers (1)
  1. 4 March, 14:20
    0
    Materials quantity variance = $2,350 F

    Explanation:

    Given:

    Standard quantity = 3.7 kilos per unit

    Standard price = $5 per kilo

    Unit produced = 6,300

    Total material = 23,780

    Computation:

    Materials quantity variance = (Actual quantity * Standard price) - (Standard quantity * Standard price)

    Materials quantity variance = (23,780 * $) - (6,300 * 3.7 * $5)

    Materials quantity variance = $118,900 - $116,550

    Materials quantity variance = $2,350 F
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