How to calculate material quantity variance?
Understand the Problem
The question is asking for the method to calculate material quantity variance, which is a concept in cost accounting that helps in analyzing the difference between the actual quantity of materials used and the standard quantity expected to be used for production.
Answer
$250
The final material quantity variance is $250
Answer for screen readers
The final material quantity variance is $250
More Information
Material quantity variance helps in determining the efficiency of material usage during production. A positive variance (actual quantity used is greater than standard quantity) is unfavorable, and a negative variance (actual quantity used is less than standard quantity) is favorable.
Tips
Ensure to use the correct units and double-check calculations to avoid errors.
Sources
- Quantity Variance - indeed.com
- How to Calculate Materials Quantity Variance - The Motley Fool - fool.com
- Material quantity variance definition - AccountingTools - accountingtools.com
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