Question

In the haden company, the standard material cost for the silk used in making a dress is $27.00 based on three square feet of silk at a cost of $9.00 per square foot. the production of 1,000 dresses resulted in the use of 3,400 square feet of silk at a cost of $9.20 per square foot. the materials quantity variance is

Answer 1

To solve for the materials quantity variance, we have the formula below:
Materials Quantity Variance = (Actual Quantity Used * Standard Rate) - (Standard Quantity Allowed * Standard Rate)

The solution is shown below:
Materials Quantity Variance = ($9.20 - $9.00)*3400
Materials Quantity Variance = $680

The answer is $680.