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.