If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual is 1,600 units at $13, the direct materials quantity variance is $5,200 favorable.

Question

Quizplus · Accepted Answer

Direct materials quantity variance = (Standard quantity of materials - Actual quantity of materials) x Standard price per unit

Standard quantity of materials = 2,000 units
Actual quantity of materials = 1,600 units
Standard price per unit = $12

Direct materials quantity variance = (2,000 - 1,600) x $12 = $4,800 unfavorable

Therefore, the statement is false. The direct materials quantity variance is not $5,200 favorable, but rather $4,800 unfavorable.

If the Standard to Produce a Given Amount of Product