Unfavourable materials quantity variance

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Reference no: EM13157067

Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six kilograms of materials at $0.30 per kilogram. Actual production in November was 3,100 units of Titactium. There was a favourable materials price variance of $380 and an unfavourable materials quantity variance of $120. Based on these variances, what could one assume?

a. That more materials were used than were purchased.

b. That the actual cost per kilogram for materials was less than the standard cost per kilogram.

c. That more materials were purchased than were used.

d. That the actual usage of materials was less than the standard allowed.

Reference no: EM13157067

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