Protein Punch Smoothies produces a protein shake which contains whey protein as one of its ingredients. The whey protein (materials) standards for each batch of protein shake produced are 10 pounds of whey protein at a standard cost of $3 per pound. During July, the company purchased and used 60,000 pounds of whey protein at a total of $102,000 to make a total of 3,500 batches of protein shake. What is the materials quantity variance for whey protein in July? OA. $95,000 unfavorable OB. $75,000 favorable OC. $95,000 favorable OD. $75,000 unfavorable
Protein Punch Smoothies produces a protein shake which contains whey protein as one of its ingredients. The whey protein (materials) standards for each batch of protein shake produced are 10 pounds of whey protein at a standard cost of $3 per pound. During July, the company purchased and used 60,000 pounds of whey protein at a total of $102,000 to make a total of 3,500 batches of protein shake. What is the materials quantity variance for whey protein in July? OA. $95,000 unfavorable OB. $75,000 favorable OC. $95,000 favorable OD. $75,000 unfavorable
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Protein Punch Smoothies produces a protein shake which contains whey protein as one of its ingredients. The whey
protein (materials) standards for each batch of protein shake produced are 10 pounds of whey protein at a standard cost of
$3 per pound. During July, the company purchased and used 60,000 pounds of whey protein at a total of $102,000 to make
a total of 3,500 batches of protein shake. What is the materials quantity variance for whey protein in July?
OA. $95,000 unfavorable
OB. $75,000 favorable
OC. $95,000 favorable
OD. $75,000 unfavorable
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