Question

During August, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was a favorable materials efficiency variance of $18,750 for August, the actual quantity of materials used must be:_______
a. 106,250 pounds.
b. 93,750 pounds.
c. 31,875 pounds.
d. 23,438 pounds

Answer 1

Answer:

actual quantity= 93,750 pounds

Explanation:

To calculate the actual quantity of direct materials, we need to use the following formula:

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

18,750= (10,000*10 - actual quantity)*3

18,750= 100,000*3 - 3actual quantity

3actual quantity= 281,250

actual quantity= 281,250/3

actual quantity= 93,750 pounds