During April, 80,000 units were produced. The standard quantity of material allowed per unit was 2 pounds at a standard cost of $4 per pound. If there was an unfavourable quantity variance of $4,000, the actual quantity of materials used must have been Multiple Choice 161,000 pounds some other answer 84,000 pounds 75,000 pounds 159,000 pounds
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
During April, 80,000 units were produced. The standard quantity of material allowed per unit was 2 pounds at a
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161,000 pounds
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some other answer
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84,000 pounds
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75,000 pounds
-
159,000 pounds
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