Question

Edgar, Inc. has a materials price standard of $1.54 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 8,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Calculate the materials quantity variance.

Name: edgar inc has a materials price standard of 154 per pound six thousand pounds of materials were purchased at 220 a pound the actual quantity of materials used was 8000 pounds although the st 30339
Uploaded: 2022-04-28T19:08:33-08:00
Duration: 1 min 57 s
Channel: Rahul Mahato
Description: edgar inc has a materials price standard of 154 per pound six thousand pounds of materials were purchased at 220 a pound the actual quantity of materials used was 8000 pounds although the st 30339

          Edgar, Inc. has a materials price standard of $1.54 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 8,000 pounds, although the standard quantity allowed for the output was 5,400 pounds.
Calculate the materials quantity variance.

Added by Ann T.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Rahul Mahato

04/28/2022

Step 1

Standard cost = Standard price x Actual quantity Standard cost = $1.54 x 8,000 pounds Standard cost = $12,320 Show more…

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Edgar, Inc. has a materials price standard of $1.54 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 8,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Calculate the materials quantity variance.