Question

The following materials standards have been established for a particular product at Zoom Industries: Standard quantity per unit of output 6.3 pounds Standard price $15.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 7,650 pounds Actual cost of materials purchased $64,780 Actual materials used in production 7,150 pounds Actual output 890 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month

Answer 1

Answer:

the material quantity variance is $23,299.30 unfavorable

Explanation:

The computation of the material quantity variance is shown below:

= (standard quantity - actual quantity) × standard rate

= (6.3 × 890  - 7,150) × $15.10

= (5,607 - 7,150) × $15.10

=  $23,299.30 unfavorable

Hence, the material quantity variance is $23,299.30 unfavorable