Question

garza toys made 4,000 teddy bears for the christmas season. the company used 3,800 pounds of direct materials that cost $6,308. the direct materials quantity standard is 1 pound per bear and the direct materials price standard is $1.50 per pound. what is the materials quantity variance? select answer from the options below $300 favorable

Answer 1

To calculate the materials quantity variance, we need to compare the actual quantity used with the standard quantity allowed.

The standard quantity allowed can be calculated by multiplying the number of bears produced (4,000) by the direct materials quantity standard (1 pound per bear), which gives us 4,000 pounds.

The actual quantity used is given as 3,800 pounds.

To find the materials quantity variance, we subtract the standard quantity allowed from the actual quantity used: 3,800 pounds - 4,000 pounds = -200 pounds.

Since the actual quantity used is less than the standard quantity allowed, we have an unfavorable variance. The unfavorable variance of 200 pounds means that the company used 200 pounds less than the standard amount of direct materials.

Therefore, the correct answer is $ 300 unfavorable (not favorable), as the variance is considered unfavorable when the actual quantity used is less than the standard quantity allowed.