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Cain's Crafty Creations produces a product that has the following standard costs :  Direct materials : 4 pounds at $ 5 per pound...........$ 20 Direct labor : 3 hours at $ 6 per hour  ......... $ 18 Manufacturing overhead : 150 % of direct labor cost ....... $ 27 Cain's purchasing agent took advantage of a special offer from one of its suppliers to purchase 44,000 pounds of material at $ 4.10 per pound . Assume 5,500 units were produced , and 34,100 pounds of material were used to produce those 5,500 units . Compute the quantity ( usage ) variance for materials .   None of the listed choices are correct $60,500 unfavorable $49,610 unfavorable $ 29,810 unfavorable $ 29,810 favorable

Cain's Crafty Creations produces a product that has the following standard costs :  Direct materials : 4 pounds at $ 5 per pound...........$ 20 Direct labor : 3 hours at $ 6 per hour  ......... $ 18 Manufacturing overhead : 150 % of direct labor cost ....... $ 27 Cain's purchasing agent took advantage of a special offer from one of its suppliers to purchase 44,000 pounds of material at $ 4.10 per pound . Assume 5,500 units were produced , and 34,100 pounds of material were used to produce those 5,500 units . Compute the quantity ( usage ) variance for materials .   None of the listed choices are correct $60,500 unfavorable $49,610 unfavorable $ 29,810 unfavorable $ 29,810 favorable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cain's Crafty Creations produces a product that has the following standard costs : 

Direct materials : 4 pounds at $ 5 per pound...........$ 20

Direct labor : 3 hours at $ 6 per hour  ......... $ 18

Manufacturing overhead : 150 % of direct labor cost ....... $ 27

Cain's purchasing agent took advantage of a special offer from one of its suppliers to purchase 44,000 pounds of material at $ 4.10 per pound . Assume 5,500 units were produced , and 34,100 pounds of material were used to produce those 5,500 units . Compute the quantity ( usage ) variance for materials .

 

None of the listed choices are correct

$60,500 unfavorable

$49,610 unfavorable

$ 29,810 unfavorable

$ 29,810 favorable

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