Question

20 widgets are produced at Widgets Inc. The standard quantity of material allowed for each unit...

20 widgets are produced at Widgets Inc. The standard quantity of material allowed for each unit is 10 ounces at a standard cost of $5 dollars per ounce. If there was an unfavorable usage variance of $16,225 in March, the actual quantity of materials used is what?

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Answer #1

Answer---3445 ounces

Standard DATA for

20

Widgets

Quantity (SQ)

Rate (SR)

Standard Cost

[A]

[B]

[A x B]

Direct Material

( 10 Ounces x 20 Widgets)=200 Ounces

$     5.00

$          1,000.00

MUV= (SQ- AQ) x SP

$16225= (200-AQ) x 5

$16225= (1000-5AQ)

5AQ=16225-1000

5AQ= 17225

AQ= 17225/5

AQ= 3445 ounces

Where

MUV= Material usage variance

SQ=Standard quantity

AQ= Actual quantity

And SP= Standard price

Material Quantity Variance

(

Standard Quantity

-

Actual Quantity

)

x

Standard Rate

(

200

-

3445

)

x

$       5.00

-16225

Variance

$16,225.00

Unfavourable-U
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