Question

The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11300 gallons of direct materials that actually cost $41810 were used to produce 6800 units of product. The direct materials quantity variance for last month was

Answer 1

Answer:

9,200 favourable

Explanation:

Calculation for direct materials quantity variance for last month

First step is to calculate the Standard quantity

Standard quantity = 6,800 units × 2 gallons

Standard quantity = 13,600gallons

Now let Calculate direct materials quantity variance for last month Using this formula

Direct materials quantity variance = Standard Price × (Standard Quantity - Actual Quantity)

Let plug in the formula

Direct materials quantity variance = $4 × (13,600 gallons - 11,300gallons)

Direct materials quantity variance = $4 × 2,300 gallons

Direct materials quantity variance = $9,200 favorable

Therefore The direct materials quantity variance for last month was $9,200 favourable