Question

Doogan Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or Rate Direct materials 2.0grams$7.00per gram Direct labor 0.4hours$12.00per hour Variable overhead 0.4hours$2.00per hour The company produced 4,600 units in January using 10,100 grams of direct material and 2,080 direct labor-hours. During the month, the company purchased 10,670 grams of the direct material at $7.30 per gram. The actual direct labor rate was $12.65 per hour and the actual variable overhead rate was $1.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:

Answer 1

Answer:

Direct material quantity variance= $6,300 unfavorable

Explanation:

Giving the following information:

Direct materials 2 grams $7.00 per gram

The company produced 4,600 units in January using 10,100 grams of direct material.

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= (2*4,600 - 10,100)*7

Direct material quantity variance= $6,300 unfavorable