Unfavorable materials-quantity variance based problem


Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titactium. There was a favorable materials price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that:

a. more materials were purchased than were used.

b. more materials were used than were purchased.

c. the actual cost per pound for materials was less than the standard cost per pound.

d. the actual usage of materials was less than the standard allowed.

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Accounting Basics: Unfavorable materials-quantity variance based problem
Reference No:- TGS086142

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