GB Corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. The pickle (materials) standards for each batch of cereal produced are 1.4 pounds of pickles at a standard cost of P3.00 per pound. During the month of August, GB purchased 78,000 pounds of pounds at a total cost of P253,500. GB used all of these pickles to produce 60,000 batches of cereal. What is GB's materials quantity variance for the month of August? * P54,000 unfavorable P18,000 favorable P19,500 unfavorable P1,500 unfavorable

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
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GB Corporation uses a standard cost system to collect costs related to the production of its
"crunchy pickle" cereal. The pickle (materials) standards for each batch of cereal produced are
1.4 pounds of pickles at a standard cost of P3.00 per pound. During the month of August, GB
purchased 78,000 pounds of pounds at a total cost of P253,500. GB used all of these pickles to
produce 60,000 batches of cereal. What is GB's materials quantity variance for the month of
August? *
P54,000 unfavorable
P18,000 favorable
P19,500 unfavorable
P1,500 unfavorable
Transcribed Image Text:GB Corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. The pickle (materials) standards for each batch of cereal produced are 1.4 pounds of pickles at a standard cost of P3.00 per pound. During the month of August, GB purchased 78,000 pounds of pounds at a total cost of P253,500. GB used all of these pickles to produce 60,000 batches of cereal. What is GB's materials quantity variance for the month of August? * P54,000 unfavorable P18,000 favorable P19,500 unfavorable P1,500 unfavorable
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