Reference no: EM132659879

The following materials standards have been established for a particular product:

Standard quantity per unit of output 6.2

poundsStandard price $15.00per pound

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 7,500pounds

Actual cost of materials purchased $64,680

Actual materials used in production 7,000pounds

Actual output 880units

The direct materials purchases variance is computed when the materials are purchased.

Problem 1: What is the materials quantity variance for the month?

Multiple Choice

Option 1: $4,312 U

Option 2: $13,315 U

Option 3: $23,160 U

Option 4: $7,500 U