Question

The standard quantity allowed for the units produced was 4,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $375 favorable. each unit uses 1 pound of materials. how many units were actually produced?

Answer 1

The standard quantity that is produces is multiplied to the standard price. The product is subtracted to the quantity variance and will be divided to the standard price. The product you have acquired will be the units that are produced.

4,500 pounds x $2.50 = 11,250
11,250 - $375  = 10,875
10,875 / $2.50 = 4,350

Answer: There are 4,350 units produced.