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Record: Materials Quantity Variance

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Question 6: Schaper Corporation has provided the following data concerning its most important raw material, compound D30X:

Standard cost, per liter: $55.80
Standard quantity, liters per unit of output: 4
Cost of material purchased in December, per liter: $39.70
Material purchased in December, liters: 2,650
Material used in production in December, liters: 2,390
Actual output in December, units: 430

The raw material was purchased on account. The Materials Quantity Variance for December would be recorded as a:
Credit of $37,386
Credit of $39,386
Debit of $37,386
Debit of $39,386

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Solution Summary

This solution is comprised of a detailed explanation to record the materials quantity variance. A comment on a debit balance is also made.

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(Appendix) Schaper Corporation has provided the following data concerning its most important raw material, compound D30X:

Standard cost, per liter: $55.80
Standard quantity, liters per unit of output: 4
Cost of material purchased in ...

Purchase this Solution
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