Question
AAA Export Companys actual production for March is 1,000 units. The standard cost for raw material #123 is $72 per unit consisting of 6 pounds
AAA Export Companys actual production for March is 1,000 units. The standard cost for raw material #123 is $72 per unit consisting of 6 pounds per unit at $12 per pound. The actual cost for raw material #123 in March amounted to $71.50 per unit consisting of 6.5 pounds per unit at $11 per pound. The resulting budget variance for raw material #123 in March was therefore $500 F (1,000 units ($72.00 $71.50). What amount of AAA Export's $500 F budget variance in March is attributable to the quantity of raw material #123 used? A. 6000 F B. 6000 U C. 6500 F D. 6500 U
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