Question

The per-unit standards for direct materials are 2 pounds at $5 per pound. Last month, 9200 pounds of direct materials that actually cost $44500 were used to produce 5100 units of product. The direct materials quantity variance for last month was:_______

Answer 1

the direct material quantity variance is $5,000 favorable

Step-by-step explanation:

The computation of the direct material quantity variance is shown below:

Direct material quantity variance is

= (Actual quantity - standard quantity) × standard price

= (9,200 pounds - 5,100 units × 2 pounds) × $5 per pound

= (9,200 pounds - 10,200 pounds) × $5 per pound

= $5,000 favorable

hence, the direct material quantity variance is $5,000 favorable