Question

Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,640 pounds of material, $5.30; and standard costs for 4,430 pounds of material at $6.10 per pound.

What is the direct materials quantity variance?

a)$3,712 unfavorable

b)$3,712 favorable

c)$1,281 favorable

d)$1,281 unfavorable

Answer 1

Option (D) is correct.

Step-by-step explanation:

Direct material quantity variance :

= [Standard quantity × Standard price] - [Actual quantity × Standard price ]

= [4,430 × $6.10] - [4,640 × $6.10]

= $27,023 - $28,304

= $1,281 unfavorable

Therefore, the direct materials quantity variance is $1,281 unfavorable.

The variance is unfavorable as the actual quantity of materials used is more than standard quantity .