The materials quantity variance for March for Preble Company, which manufactures a product, is <u>$96,000 Unfavorable</u>.
<h3>What is a materials quantity variance?</h3>
A material quantity variance shows the difference between the actual materials consumed and the budgeted amount in production.
Computing the materials quantity variance helps management to determine the production efficiency.
The materials quantity variance can be computed using the following formula:
Materials Quantity Variance = (Standard Quantity Units – Actual Quantity Units ) ✕ Standard Cost Per Unit.
<h3>Data and Calculations:</h3>
Planned production and sales units = 32,000 units
Actual production and sales units = 37,000 units
<h3>Standard Costs:</h3>
Direct materials: 4 pounds at $8 per pound $ 32
Direct labor: 2 hours at $16 per hour 32
Variable overhead: 2 hours at $6 per hour 12
Total standard cost per unit $ 76
<h3>Actual Costs:</h3>
Purchase of raw materials = 160,000 pounds
Cost of purchase per pound = $7.40
Direct labor hours = 67,000 hours
Direct labor rate = $17 per hour
Total variable manufacturing overhead = $422,100
Materials Quantity Variance = (Standard Quantity Units – Actual Quantity Units ) ✕ Standard Cost Per Unit.
= (37,000 x 4 - 160,000) x $8
= $96,000 Unfavorable
Thus, the materials quantity variance for March for Preble Company is <u>$96,000 Unfavorable</u>.
Learn more about computing variances at brainly.com/question/15858152
