Big Boy Burgers sells burgers with 0.5 lb meat on each burger. They expected to buy meat at $2.30/lb, but actually ended up paying $3.35/lb. They made 100 burgers this week, and actually used 55 lbs of meat. Calculate the Direct Materials Quantity Variance.
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$16.75 favorable |
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$150.75 favorable |
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$69.25 unfavorable |
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$11.50 unfavorable |
Answer: $11.50 Unfavorable
Calculations:
Standard quantity (SQ) = Actual output x Standard quantity per output = 100 burgers x 0.5 lb = 50 lbs
Direct materials quantity variance = (Actual quantity - Standard quantity) x Standard price
= (55 lbs - 50 lbs) x $2.30
= 5 lbs x $2.30
= $11.50 Unfavorable
Big Boy Burgers sells burgers with 0.5 lb meat on each burger. They expected to buy...