Petrillo Company produces engine parts for large motors and uses standard costing for its production costing and control. The company provided the following information for the month of November: Standards for direct materials per 7 lbs. at $6 per unit Ibs. Parts produced 2,000 units Direct materials purchased 12,000 lbs. at $5.8 per Beginning inventory of direct Ibs. materials 5,000 lbs. Ending inventory of direct materials 2,000 lbs. What is the direct material quantity (usage) variance?

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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Petrillo Company produces engine parts for large motors and uses
standard costing for its production costing and control. The company
provided the following information for the month of November:
Standards for direct materials per
7 lbs. at $6 per
unit
Ibs.
Parts produced
2,000 units
Direct materials purchased
12,000 lbs. at $5.8 per
Beginning inventory of direct
Ibs.
materials
5,000 lbs.
Ending inventory of direct materials 2,000 lbs.
What is the direct material guantity (usage) variance?
O $6,000 U
O $30,000 F
O $3,000 U
O $12,000 F
Transcribed Image Text:Petrillo Company produces engine parts for large motors and uses standard costing for its production costing and control. The company provided the following information for the month of November: Standards for direct materials per 7 lbs. at $6 per unit Ibs. Parts produced 2,000 units Direct materials purchased 12,000 lbs. at $5.8 per Beginning inventory of direct Ibs. materials 5,000 lbs. Ending inventory of direct materials 2,000 lbs. What is the direct material guantity (usage) variance? O $6,000 U O $30,000 F O $3,000 U O $12,000 F
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