A manufacturing company has a standard quantity of direct materials of 7 pounds per unit at a standard price of $2.20 per pound.In April the actual material price was $2.40 per pound and the company produced 5,500 units.If the company experienced a favorable material quantity variance of $6,600 during the month, how much was the actual quantity of material used?
A)35,500 pounds
B)32,542 pounds
C)38,500 pounds
D)41,500 pounds

Question

Quizplus · Accepted Answer

The favorable material quantity variance indicates that the actual quantity of material used was less than the standard quantity. The variance is calculated as (Actual quantity - Standard quantity) * Standard price. Substituting the given values, we get:$6,600 = (Actual quantity - 7 pounds per unit * 5,500 units) * $2.20 per pound$6,600 = (Actual quantity - 38,500 pounds) * $2.20 per pound$6,600 = $83,600 - $2.20 per pound * Actual quantity$2.20 per pound * Actual quantity = $77,000Actual quantity = 35,000 pounds

A Manufacturing Company Has a Standard Quantity of Direct Materials