Degregorio Corporation makes a product that uses a material with the following direct materialstandards:
Standard quantity............................. 3.8 kilos / unit
Standard price............................................ $7 / kilo
The company produced 5,600 units in November using 21,750 kilos of the material. During themonth, the company purchased 24,800 kilos of the direct material at a total cost of $168,640. Thedirect materials purchases variance is computed when the materials are purchased.1. The materials quantity variance for November is:
a. $3,290 F
b. $3,196 F
c. $3,290 U
d. $3,196 U
2. The materials price variance for November is:
a. $4,256 F
b. $4,256 U
c. $4,960 F
d. $4,960 U