Question

Hushovd Iron Works has collected the following data for its Thunderbolt line of products:Direct materials standard10 pounds per unitDirect materials standard cost$0.75 per poundActual direct materials used40,000 poundsActual finished goods produced4,500 unitsWhat is the direct materials quantity variance?A) $3,750 unfavorableB) $3,750 favorableC) $6,750 unfavorableD) $6,750 favorable

Answer 1

Direct material quantity variance= 3746.25 pounds (favorable)

Step-by-step explanation:

Giving the following information:

Direct materials standard 10 pounds per unit.

Direct materials standard cost $0.75 per pound.

Actual direct materials used 40,000 pounds.

Actual finished goods produced 4,500 units.

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

Direct material quantity variance= (10-8.89)*0.75= 0.8325*4500units= 3746.25 pounds (favorable)