Question:
standard total cost Actual total cost
Direct material
Standard 2000 pints $3.50/pint $7,000
Actual 2,500 pints $5.00/pint $12,000
Answer:
Materials quantity variance= $1,750 unfavorable
Explanation:
<em>Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity. </em>
<em>It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price </em>
pints
Standard quantity allowed 2,000
Actual quantity used <u> 2,500</u>
Quantity variance 500 unfavorable
Standard price <u> $3.50 </u>
Materials quantity variance <u>1,750 </u>unfavorable
Materials quantity variance= $1,750 unfavorable
