Question

The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.90; actual, $2.05 Standard yards per unit: standard, 4.65 yards; actual, 5.08 yards Units of production: 9,500 Calculate the direct materials quantity variance. a.$7,761.50 unfavorable b.$8,374.25 favorable c.$8,374.25 unfavorable d.$7,761.50 favorable

Answer 1

Answer:

The correct answer is "7,239".

Step-by-step explanation:

Given values:

Standard price,

SP = $1.90

Actual quantity purchased,

AQP = $5.08\times 9500$

        = $48,260 \ Yards$

Actual price,

AP = $2.05

Now,

The material price variance will be:

= $(AQP\times AP)-(AQP\times SP)$

By substituting the values, we get

= $(48260\times 2.05)-(48260\times 1.90)$

= $98933-91694$

= $7,239$