Berends Corporation makes a product with the following standard costs:

The company reported the following results concerning this product in April.

  1. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for April is:

  • $8,430 F
  • $8,430 U
  • $7,868 U
  • $7,868 F

Answer:

SQ = 8,800 units × 9.2 pounds per unit = 80,960 pounds
Materials quantity variance = (AQ – SQ) × SP
= (78,150 pounds − 80,960 pounds) × $3.00 per pound
= (−2,810 pounds) × $3.00 per pound
= $8,430 F

Leave a Comment