Question

The standard costs and actual costs for direct materials for the manufacture of 1,910 actual units of product are as follows: Standard Costs Direct materials 1,910 kilograms at $8.60 Actual Costs Direct materials 2,000 kilograms at $8.15 The direct materials quantity variance is

Answer 1

$774 unfavorable

Step-by-step explanation:

The computation of the direct material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $8.60 × (1,910 kilograms - 2,000 kilograms)

= $8.60 × 90 kilograms

= $774 unfavorable

Since it is unfavorable as it derives that actual quantity is more than the standard quantity and in the case of favorable, the actual quantity is less than the standard quantity