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VladimirAG [237]
3 years ago
5

Relevant information for Material A is as follows:

Business
1 answer:
stiv31 [10]3 years ago
7 0

Answer:

Direct Material Quantity Variance = $2,000 Unfavorable

Explanation:

For the provided information we have,

Actual quantity used = 6,500 lbs

Standard quantity allowed for actual production = 6,000 lbs

Actual price = $3.80

Standard price = $4.00

Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) \times Standard Price

= (6,000 lbs - 6,500 lbs) \times $4.00

= - $2,000

As we can see that actual quantity used is more than the allowed standard quantity, thus, the variance is unfavorable.

Direct Material Quantity Variance = $2,000 Unfavorable

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<h3>Learn more</h3>
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<h3>Answer details</h3>

Grade:  9

Subject:  

Chapter: ratification

Keywords:  ratification

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