B. This answer results from using the quantity of direct materials purchased instead of the quantity of direct materials used in production. See the correct answer for a complete explanation.

C. The material quantity variance (also called the efficiency or usage variance) is the difference between the actual material usage and the standard usage for this level of output, multiplied by the standard price; or (AQ - SQ) × SP. The actual amount used was 142,500 pounds. The standard quantity is 8 pounds per unit, so the standard quantity to produce 19,000 units is 19,000 × 8, or 152,000 pounds.

The standard price is $1.80. So the material quantity variance is (142,500 - 152,000) × $1.80 = $(17,100) favorable. The variance is negative, which is favorable for a cost variance, because the actual quantity used was less than the standard quantity allowed for the actual output.

D. The material quantity variance is favorable because the amount used in production was less than the standard amount for the production. See the correct answer for a complete explanation