Hancock Corporation makes a product that uses a material wit…
Hancock Corporation makes a product that uses a material with the quantity standard of 7.0 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month Hancock purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for January is: