Sagnik B.

Materials Quantity Variance Question Accounting Need Help

Moronta Inc manufactures a single product and is budgeted to produce 1,100 units in the month of March. For material, the product requires a standard quantity of 8 pounds per unit with a standard price of $17.75 per pound. Because of weaker demand, the company actually produced 1,000 units in the month with the following activity for material : Beginning Material Inventory : 0 lbs Actual Material Purchased : 9000 lbs at an actual cost of$112,500
Ending Materials Inventory : 800 lbs

Question : For the month of March , Moronta's Material Quantity Variance was :
A) 17,750 Unfavorable B) 3,550 Unfavorable C) 10,650 Favorable D) 2,500 Favorable E) None of Above

Answer was B) but I need help with steps as to how.

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CPA Exam, Financial and Managerial Accounting

Sagnik B.

Thanks :) I have more open questions, please take a look.
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01/15/15

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