Question

The following materials standards have been established for a particular product: Standard quantity per unit of output Standard price 4.8 pounds $13.60 per pound The following data pertain to operations concerning the product for the last month: 5,400 pounds Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output $63,280 4,900 pounds 740 units The direct materials purchases variance is computed when the materials are purchased What is the materials quantity variance for the month? < Prev5 of 15 Next>

thank you

Answer 1

Standard quantity = Standard quantity per unit × Actual output = 4.8 × 740 = 3,552

Materials quantity variance = Standard price × (Actual quantity − Standard quantity) = $13.60 × (4,900 − 3,552) = $18,332.8 unfavorable