Answer:
$577.5 favorable
Explanation:
Data provided in the question:
Standard quantity per unit 3 lbs
Standard price per pound = $2.75
Actual pounds used = 15,000 lbs
Actual price per pound = $2.90
Number of units produced = 5,070
Now,
The direct materials quantity variance is given as;
= | ( Actual quantity - Standard quantity ) | × Standard price
= ( 15,000 lbs - {Standard quantity per unit × units produced}) × $2.75
= ( 15,000 lbs - { 3 × 5,070}) × $2.75
= | ( 15,000 lbs - 15,210 ) | × $2.75
= $577.5
Since,
Standard quantity is higher than the actual quantity
thus,
$577.5 favorable
