Best Ever Cereal Corporation uses a standard cost system for its cereal. The standard for the material for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Best purchased 78,000 pounds of pickles at a total cost of $253,500. Best used all of these pickles to produce 60,000 batches of cereal. What is Best's materials quantity variance for August

the material quantity variance is $18,000 favorable

Explanation:

The computation of the material quantity variance is as follows

Material quantity variance is

= standard cost × ( actual quanitity used - standard quantity usage per batch × number of batches produced)

= $3.00 × (78,000 - 60,000 × 1.4)

= $18,000 favorable

Hence, the material quantity variance is $18,000 favorable

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