Question

Sheridan Company has a materials price standard of $2.00 per pound. 5700 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 5700 pounds, although the standard quantity allowed for the output was 5200 pounds. Sheridan Company's materials quantity variance is

Answer 1

Answer:

$1,000 Unfavorable

Explanation:

Calculation to determine what Sheridan Company's materials quantity variance is

Using this formula

Direct Material Price Variance = (Standard quantity allowed - Actual quantity of materials) * materials price standard

Let plug in the formula

Direct Material Price Variance=(5200 pounds-5700 pounds)*$2.00 per pound

Direct Material Price Variance=-500 pound*$2.00 per pound

Direct Material Price Variance=-$1,000

Unfavorable

Therefore Sheridan Company's materials quantity variance is $1,000

Unfavorable