Answer:
Direct material quantity variance= $6,732 favorable
Explanation:
Giving the following information:
Standard quantity per unit of output 1.7 meters
Standard price $19.80 per meter
Actual materials purchased 5,800 meters
Actual materials used in production 5,100 meters
Actual output 3,200 units
First, we need to determine the standard quantity of material to produce 3,200 units:
Standard quantity= 1.7*3,200= 5,440 meters
Now, using the following formula, we can calculate the direct material quantity variance:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (5,440 - 5,100)*19.8= $6,732 favorable
It is favorable because it used less material than estimated.
