Materials Quantity Variance Question Accounting Need Help

Question

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.

Answer 1

Formula

(std qty - act qty) x std price =

 

8000 - 8200 x 17.75=

 

3550U

 

its unfavorable because you used more than budgeted