If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials quantity variance is $2,200 unfavorable.

Question

Quizplus · Accepted Answer

The direct materials quantity variance is calculated as (Standard Quantity - Actual Quantity) x Standard Price. In this case, it would be (1,000 units - 800 units) x $11 = 200 units x $11 = $2,200 favorable, not unfavorable, because less material was used than expected.

If the Standard to Produce a Given Amount of Product