Managerial Accounting Questions need help by today

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

Sagnik,

 

Material purchased was 9000 lbs. 

Ending inventory is 800 lbs

So 8200 lbs material was used.

 

Company produced 1000 units and each needs 8 lb material. Expected material to be used is 8000 lbs.

 

So 200 lbs is the material quantity variance which is unfavorable.

Standard price is $17.75 hence $3550 unfavorable.