Question

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance. Direct materials standard (6 lbs. e $2/1b.) Actual direct materials used Actual finished units produced Actual cost of direct materials used 12 per finished unit 279,300 lbs. 46,000 units $556,110 Multiple Choice O $2,490 unfavorable. $4.10 unfavorable. $2,490 favorable. $6.600 unfavorable. $410 favorable.

Answer 1

Direct material quantity variance = Standard Quantity in lbs - Actual Quantity in lbs * Standard Rate per lb

= [(46,000 units * 6 lbs per unit) - 279,300 lbs] * $2 per lb

= (276,000 lbs - 279,300 lbs) * $2 per lb

= -3,300 lbs * $2 per lb

= $6,600 (Unfavorable)

Therefore, the direct material quantity variance is $6,600 unfavorable.

Note: It is unfavorable because when the actual materials used is more than the standard materials allowed to use.