Question

The following company information is available. The direct materials quantity variance is:

Answer 1

Answer:

Direct material quantity variance= $9,600 unfavorable

Explanation:

Giving the following information:

Direct materials used for production 36,000 gallons

Standard quantity for units produced 34,400 gallons

Standard cost per gallon of direct material $6.00

To calculate the direct material quantity variance, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (34,400 - 36,000)*6

Direct material quantity variance= $9,600 unfavorable