Concord has a standard of 1.5 pounds of materials per unit, at $5 per pound. In producing 2000 units, Concord used 3100 pounds of materials at a total cost of $15,135. What is Concord's materials quantity variance?

A. $365U
B. $500U
C. $875U
D. $135 F

Question

High School

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Answer :

CallumPhillips CallumPhillips · Answer 1 · 2024-07-22T08:09:13-04:00

Concord's materials quantity variance is $500.

To calculate Concord's materials quantity variance, we need to use the formula:

Materials Quantity Variance = (Actual Quantity of Materials Used - Standard Quantity of Materials) * Standard Cost per Unit of Materials

Given:

First, let's calculate the standard quantity of materials for producing 2000 units:

Standard Quantity of Materials = Standard Quantity per unit * Number of Units

Standard Quantity of Materials = 1.5 pounds * 2000 units = 3000 pounds

Now, we can calculate the materials quantity variance:

Materials Quantity Variance = (Actual Quantity of Materials Used - Standard Quantity of Materials) * Standard Cost per Unit of Materials

Materials Quantity Variance = (3100 pounds - 3000 pounds) * $5/pound

Materials Quantity Variance = 100 pounds * $5/pound = $500

Therefore, Concord's materials quantity variance is $500.

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