Question

Use the following data for questions #11-13

SOHO Company produces furniture and has the following data related to its
direct material costs: standard costs are 22, 500 yards at $8.25 per yard and
actual costs are 24,250 yards at $9.50 per yard.
12. What is the direct material quantity variance?

Answer 1

formula:

Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) * Standard Price per Unit

Direct Material Quantity Variance= (22,500 - 24,250) * $8.25

(22,500 - 24,250) * $8.25 = (-1,750) * $8.25 = -$14,437.50