Question

Haden Company has determined that the standard material cost for the silk used in making a dress is $27.00 based on three square feet of silk at a cost of $9.00 per square foot. The production of 1,000 dresses resulted in the use of 3,400 square feet of silk at a cost of $9.20 per square foot. What is the direct materials quantity variance?

Answer 1

$3,600 unfavorable

Step-by-step explanation:

Given:

Standard material price = $9 per square foot

Actual material price = $9.2 per square foot

Standard material = 3 square feet

Standard material allowed = 1,000 × 3 = 3,000 square feet

Actual material used = 3,400 square feet

Direct material quantity variance = (Standard material allowed - Actual) × Standard price per unit

= (3000 - 3400) × 9

= $3,600 unfavorable

Actual material used is more than standard material allowed, so variance is unfavorable.