Question

The following materials standards have been established for a particular product: Standard quantity per unit of output 4.8 pounds Standard price $ 13.60 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 5,400 pounds Actual cost of materials purchased $ 63,280 Actual materials used in production 4,900 pounds Actual output 740 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month

Answer 1

Answer:

$18,332 unfavorable

Explanation:

The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $13.60 per pound × (740 units × 4.8 pounds - 4,900 pounds)

= $13.60 per pound × (3,552 - 4,900)

= $13.60 per pound × 1,348 pounds

= $18,332 unfavorable

We simply applied the above formula to determine the materials quantity variance for the month