Question

Benny Company budgeted 610 pounds of direct materials costing​ $18.00 per pound to make​ 8,000 units of product. The company actually used 650 pounds of direct materials costing​ $30.00 per pound to make the​ 8,000 units. What is the direct materials quantity​ variance?

Answer 1

Answer:

-$720 unfavorable

Explanation:

The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $18 per pound × (610 pounds - 650 pounds)

= $18 per pound × -40 pounds

= -$720 unfavorable

Simply we take the difference between the standard quantity and the actual quantity and then multiply it by the standard price so that the correct value can come