Question

Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,650 pounds of material at $5.30 and standard costs for 4,440 pounds of material at $6.40 per pound. The direct materials quantity variance is a.$5,115 favorable b.$1,344 favorable c.$5,115 unfavorable d.$1,344 unfavorable

Answer 1

Answer:

D. $1,344 unfavorable

Explanation:

We know,

Direct materials quantity variance = (Standard Quantity - Actual Quantity) × Standard price

Given,

Standard Quantity = 4,440 pounds of material

Actual Quantity = 4,650 pounds of material

Standard price = $6.40

Putting the values into the above formula, we can get,

Direct materials quantity variance = (4,440 - 4,650) pounds × $6.40

or, Direct materials quantity variance = -210 pounds × $6.40

Therefore, Direct materials quantity variance = $1,344

As the actual quantity is higher than standard quantity, the situation is unfavorable. Therefore, option D is the answer.