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Butoxors [25]
3 years ago
8

a company has established 5 pounds of material j at $2 per pound as the standard for the material in its product z. the company

has just produced 1,000 units of this product, using 5,200 pounds of material j that cost $9,880. the direct materials quantity variance is:
Business
1 answer:
Neporo4naja [7]3 years ago
7 0

Answer:

direct materials quantity variance = 520 Favourable

Explanation:

given data

material = $2 per pound

produced = 1,000 units

Actual Quantity of Material = 5200

cost = $9,880

to find out

direct materials quantity variance

solution

we get here Material Price Variance that is express as

direct materials quantity variance = ( Standard Cost - Actual Cost) Actual Quantity of Material   .......................1

put here value we get

direct materials quantity variance = 2-   \frac{9880}{5200} × 5200

direct materials quantity variance = 520 Favourable

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