Answer:
Direct materials quantity variance = 5800 Unfavorable
so correct option is $5,800 unfavorable
Explanation:
given data
Direct materials standard 6 lbs. @ $2/lb. = $12 per finished unit
Actual direct materials = 230,900 lbs
Actual finished units produced = 38,000 units
Actual cost of direct materials = $459,390
to find out
Direct materials quantity variance
solution
we get here Direct materials quantity variance that is express as
Direct materials quantity variance = ( Actual Quantity - Standard Quantity) × Standard Price ........................1
we know here Actual Quantity is 230,900 lbs
and Standard Quantity is = Actual finished units produced × Direct materials standard quantity per unit
Standard Quantity = 38000 × 6
Standard Quantity = 228000 lbs and here Standard Price is $2 per lb
so put here value in equation 1 , we get
Direct materials quantity variance = (230900 - 228000) × $2
Direct materials quantity variance = 5800 Unfavorable
so correct option is $5,800 unfavorable
