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Tamiku [17]
3 years ago
12

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity

variance.
Direct materials standard (6 lbs. @ $2/lb.) | $ 12 per finished unit
Actual direct materials used | 243,000 lbs.
Actual finished units produced | 40,000 units
Actual cost of direct materials used | $ 483,570
Business
1 answer:
Monica [59]3 years ago
4 0

Answer:

$6,000 Unfavorable

Explanation:

Actual Quantity = 243,000 lbs

Standard Quantity:

= Actual finished units produced × Direct materials standard quantity per unit

= 40,000 units × 6 lbs

= 240,000 lbs

Standard Price = $2 per lb.

Hence,

Direct materials quantity variance:

= (Actual Quantity - Standard Quantity) × Standard Price

= (243,000 - 240,000) × $2

= $6,000 Unfavorable

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