Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Get quick and reliable solutions to your questions from knowledgeable professionals on our comprehensive Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Sheffield Corp. has a materials price standard of $2.00 per pound. 4900 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 4900 pounds, although the standard quantity allowed for the output was 4000 pounds. Sheffield Corp.'s materials quantity variance is:_____.
a. $1980 U.
b. $1800 F.
c. $1800 U.
d. $1980 F.

Sagot :

ayokenny2001

Answer:

a. $1,980 U

Explanation:

We will compute the direct materials quantity variance using the formula below.

Direct materials quantity variance =

(Standard quantity allowed - Actual quantity of materials) × Materials price standard

Fixing in the values, we'll have;

Direct materials quantity variance

= (4,000 pounds - 4,900 pounds) × $2.20 per pound

= -900 pounds × $2.20 per pound

= -$1,980

= $1,980 U

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.