Question

A company developed the following per unit materials standards for its product: 3 pounds of direct materials at $5 per pound. If 10000 units of product were produced last month and 31250 pounds of direct materials were used, the direct materials quantity variance was

Answer 1

Answer:

Direct material quantity variance= $6,250 unfavorable

Explanation:

Giving the following information:

Standard:

3 pounds of direct materials at $5 per pound.

10,000 units of product were produced last month and 31,250 pounds of direct materials were used.

To calculate the direct material quantity variance, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (3*10,000 - 31,250)*5

Direct material quantity variance= $6,250 unfavorable