156k views
2 votes
The per-unit standards for direct materials are 2 pounds at $5 per pound. Last month, 11,200 pounds of direct materials that actually cost $53,000 were used to produce 6,000 units of product. The direct materials quantity variance for last month was

$7,000 unfavorable.

$4,000 favorable.

$4,000 unfavorable.

$3,000 favorable.

1 Answer

5 votes

Answer:

$4,000 favorable.

Step-by-step explanation:

The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $5 per pound × (2 pound × 6,000 units - 11,200)

= $5 per pound × (12,000 - 11,200)

=$5 per pound × 800

= $4,000 favorable

Since the standard quantity is higher than the actual quantity so the variance should be favorably otherwise unfavorable

User Alfaplus
by
8.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.