Calculate the Direct Materials Quantity variance using the above information:
A) $4,512.50 Unfavorable
B) $4,512.50 Favorable
C) $4,750 Unfavorable
D) $4,750 Favorable

Question

Calculate the Direct Materials Quantity variance using the above information:
A) $4,512.50 Unfavorable 
B) $4,512.50 Favorable 
C) $4,750 Unfavorable 
D) $4,750 Favorable

Quizplus · Accepted Answer

Direct Materials Quantity variance = (Actual Quantity of Materials Used - Standard Quantity of Materials Allowed) x Standard Price per Unit
= (4,800 - 4,500) x $1.00
= $300 Unfavorable

Note: The answer choices provided are all incorrect. The correct answer is neither A nor B nor D, but C.

Calculate the Direct Materials Quantity Variance Using the Above Information