Omega Corp. has a material standard of 1.8 pounds per unit of output. Each pound has a standard price of $12 per pound. During March, Omega Corp. paid $48,600 for 4,050 pounds, which were used to produce 2,300 units. What is the direct materials quantity variance? Answer: $1,080 favorable

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Omega Corp. has a material standard of 1.8
pounds per unit of output. Each pound has
a standard price of $12 per pound. During
March, Omega Corp. paid $48,600 for 4,050
pounds, which were used to produce 2,300
units.
What is the direct materials quantity
variance?
Answer: $1,080 favorable
Transcribed Image Text:Omega Corp. has a material standard of 1.8 pounds per unit of output. Each pound has a standard price of $12 per pound. During March, Omega Corp. paid $48,600 for 4,050 pounds, which were used to produce 2,300 units. What is the direct materials quantity variance? Answer: $1,080 favorable
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