Ben's Climbing Gear, Inc. has direct material costs as follows:
Actual units of direct material used 20,000
Standard price per unit of direct materials $2.50
Direct material quantity variance--favorable $5,000
What was Ben's standard quantity of materials?
A.$18,000
B.$20,000
C.$22,000
D.$24,000
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Help with cost accounting question?
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#1 Mon Nov 23, 2009 11:40 pm
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#2 Tue Nov 24, 2009 1:01 am
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C.
DM Qty Var = (Std Q x Std Rate) - (Actual Q x Std Rate) 5000 = (Std Q x 2.50) - (20,000 x 2.50) Std Qty = 22,000 Cheers... |
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