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Managerial Accounting

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Calculating Material Variances for Strawberries

MGRACT-KSG9O6

Sara Lee Corp makes strawberry pies to sell to wholesalers. One shipment of strawberries pies requires 5,000 pounds of strawberries at a budgeted price of \$4.00 per pound. The company purchased 5,100 lbs. in July and paid a \$20,145 for strawberries. What is the quantity variance?

A

$255 Favorable

B

$145 Unfavorable

C

$400 Unfavorable

D

$155 Favorable