If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual was 1,600 units at $13, the direct materials quantity variance was $4,800 favorable.

Question

Quizplus · Accepted Answer

To calculate the direct materials quantity variance, we use the formula:
(Direct materials standard quantity - Direct materials actual quantity) x Direct materials standard price

In this case, the standard quantity is 2,000 units and the actual quantity is 1,600 units, so:

(2,000 - 1,600) x $12 = $4,800 favorable

Therefore, the answer is A - True.

If the Standard to Produce a Given Amount of Product