Question

Coronado, Inc. makes high-quality swimsuits. During the year, the company produced 785 suits, using 1,069 yards of material, and the company purchased 925 yards of material for $4,784. The direct materials standard for the swimsuits allows 1.28 yards of material at a standard price of $4 per yard Calculate Coronado's direct materials quantity variance for the year. ( variance is zero, select "Not Applicable" and enter O for the amounts Round answer to O decimal places, e.g. 15.)

Answer 1

Actual Quantity Standard quantity Standard rate

1069 1004.8 $ 4

(785 * 1.28)

Direct Material

Quantity Variance= (Standard quantity - Actual quantity) * standard price

(1004.8 - 1069) * $4

$ (256.80) unfavorable

Hence,

Direct Material Quantity Variance = $257 unfavorable