Question

Bradford company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. the company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. what is the direct materials quantity variance

Answer 1

The direct materials quantity variance for Bradford company is $2,500 unfavorable because they used 500 pounds more material than budgeted for 2,000 units, at a standard cost of $5.00 per pound.

Step-by-step explanation:

The direct materials quantity variance is calculated by taking the difference between the actual quantity of material used and the standard quantity allowed for the actual production, multiplied by the standard cost per pound. In this case, Bradford company budgeted for 4,000 pounds but actually used 4,500 pounds, all for the production of 2,000 units. The standard cost per pound is $5.00.

To calculate the variance, we use the following formula:

Variance = (Actual Quantity - Standard Quantity) × Standard Cost

So, the variance is:

Variance = (4,500 pounds - 4,000 pounds) × $5.00/pound

Variance = 500 pounds × $5.00/pound

Variance = $2,500

Therefore, the direct materials quantity variance is $2,500 unfavorable, since the company used more materials than budgeted, which incurs an additional cost.

Answer 2

Budgeted direct materials quantity
4000 pounds

Actual direct materials quantity
4500 pounds

Direct materials quantity variance
4500-4000=500 pounds ( underapplied)