Question

The following company information is available. The direct materials quantity variance is: Direct materials used for prodution Standard quantity for units produced Standard cost per gallon of direct material Actual cost per gallon of direct material 35,000 gallons 33,400 gallons $11.00 $11.20 Multiple Choice $17600 unfavorable. $17200 favorable $24,600 unfavorable

Answer 1

Question 1

Correct answer---$17,600 Unfavorable.

Material Quantity Variance
(	Standard Quantity	-	Actual Quantity	)	x	Standard Rate
(	33400	-	35000	)	x	$    11.00
	-17600
	Variance		$ 17,600.00			Unfavourable-U

Question 2

Correct answer----$4980 Unfavorable

Direct Labor Rate Variance
(	Standard Rate	-	Actual Rate	)	x	Actual Labor Hours
(	$ 6.90	-	$ 7.30	)	x	12450
	-4980
	Variance		$   4,980.00			Unfavourable-U

Question 3

Correct answer---$21,700 Unfavorable

Material Price Variance
(	Standard Rate	-	Actual Rate	)	x	Actual Quantity
(	$ 1.55	-	$ 1.70	)	x	141000
	-21700
	Variance		$ 21,700.00			Unfavourable-U