During August, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was a favorable materials efficiency variance of $18,750 for August, the actual quantity of materials used must be: a. 106,250 pounds.
b. 93,750 pounds.
c. 31,875 pounds.
d. 23,438 pounds

actual quantity= 93,750 pounds

Explanation:

To calculate the actual quantity of direct materials, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

18,750= (10,000*10 - actual quantity)*3

18,750= 100,000*3 - 3actual quantity

3actual quantity= 281,250

actual quantity= 281,250/3

actual quantity= 93,750 pounds

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.