Ultimate Production manufactures radon detectors. The standard for materials for each detector is 2 pounds of acrylic at a standard cost of $4.30 per pound. During May, the company purchased 890 pounds and used 830 pounds of acrylic, and made 410 radon detectors. The company paid $4.45 per pound for the acrylic. There were 400 detectors budgeted for May. How much is the material quantity variance? A) $134 unfavorable B) $43 unfavorable C) $177 unfavorable D) $263 unfavorable

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...
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Ultimate Production manufactures radon detectors. The standard for
materials for each detector is 2 pounds of acrylic at a standard cost of $4.30
per pound. During May, the company purchased 890 pounds and used 830
pounds of acrylic, and made 410 radon detectors. The company paid $4.45
per pound for the acrylic. There were 400 detectors budgeted for May.
How much is the material quantity variance?
A) $134 unfavorable
B) $43 unfavorable
C) $177 unfavorable
D) $263 unfavorable
Transcribed Image Text:Ultimate Production manufactures radon detectors. The standard for materials for each detector is 2 pounds of acrylic at a standard cost of $4.30 per pound. During May, the company purchased 890 pounds and used 830 pounds of acrylic, and made 410 radon detectors. The company paid $4.45 per pound for the acrylic. There were 400 detectors budgeted for May. How much is the material quantity variance? A) $134 unfavorable B) $43 unfavorable C) $177 unfavorable D) $263 unfavorable
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