The standard and actual prices per pound of raw material are $4.00 and $4.50,respectively. A total of 10,500 pounds of raw material was purchased and then usedto produce 5,000 units. The quantity standard allows two pounds of the raw materialper unit produced. What is the materials quantity variance?a. $5,000 unfavorableb. $5,000 favorablec. $2,000 favorabled. $2,000 unfavorable

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3CMA
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The standard and actual prices per pound of raw material are $4.00 and $4.50,
respectively. A total of 10,500 pounds of raw material was purchased and then used
to produce 5,000 units. The quantity standard allows two pounds of the raw material
per unit produced. What is the materials quantity variance?
a. $5,000 unfavorable
b. $5,000 favorable
c. $2,000 favorable
d. $2,000 unfavorable

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