XYZ Company presents the following materials data: AQ × AP = $150,000; AQ × SP = $145,000; SQ × SP = $152,000. Compute the direct materials quantity variance.

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards

From $25.99Unlock all

Prepare for the Accounting SmartBook Test. Practice with tailored questions and helpful hints. Analyze comprehensive explanations for a deep understanding. Ace your exam with confidence!

Multiple Choice

XYZ Company presents the following materials data: AQ × AP = $150,000; AQ × SP = $145,000; SQ × SP = $152,000. Compute the direct materials quantity variance.

Direct materials quantity variance shows whether actual material usage was more or less than the standard amount for the actual production, valued at the standard price. It is calculated as (AQ − SQ) × SP, which you can compute using the given products: AQ × SP and SQ × SP.

AQ × SP = 145,000 and SQ × SP = 152,000, so DMQV = 145,000 − 152,000 = −7,000. A negative result means you used less material than planned, which is favorable. Therefore, the direct materials quantity variance is 7,000 favorable.

XYZ Company presents the following materials data: AQ × AP = $150,000; AQ × SP = $145,000; SQ × SP = $152,000. Compute the direct materials quantity variance.

Prepare for the Accounting SmartBook Test. Practice with tailored questions and helpful hints. Analyze comprehensive explanations for a deep understanding. Ace your exam with confidence!

XYZ Company presents the following materials data: AQ × AP = $150,000; AQ × SP = $145,000; SQ × SP = $152,000. Compute the direct materials quantity variance.

Get the latest from Passetra