1. In a standard cost system, materials price variance is obtained by multiplying the

A) Actual quantity purchased by the difference between actual price and standard price.

B) Standard price by the difference between actual expected quantity and budgeted quantity.

C) Actual quantity used by the difference between standard price and actual price.

D) Actual price by the difference between actual quantity used and standard quantity used.

2. Stench Foods Company uses a standard cost system collect costs related to the production of its garlic flavored yogurt. The garlic (direct material) standard for each container of yogurt produced is $1. 84, based on 0.80 ounces of crashed garlic at a cost of $2.30 per ounce. During the month of June. Stench purchased 75,000 ounces of crashed garlic at a total cost of $171,000. Stench used 64,000 ounces of garlic to produce 71, 500 containers of yogurt. The materials quantity variance for June was:

A) $17, 250 favorable

B) $23, 800 favorable

C) $15, 640 unfavorable

D) $1, 500 favorable

Answer rating: 100% (QA)

1 c Actual quantity used by the difference between standard pr... View the full answer