The per-unit standards for direct materials are 2 pounds at $4 per pound. Last month, 11,200 pounds of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was
A) $3,200 favorable.
B) $2,400 favorable.
C) $3,200 unfavorable.
D) $5,600 unfavorable.

Question

Quizplus · Accepted Answer

The standard quantity for 6,000 units is 12,000 pounds (6,000 units x 2 pounds/unit). The actual quantity used was 11,200 pounds. The quantity variance is (12,000 - 11,200) x $4 = $3,200 favorable.

The Per-Unit Standards for Direct Materials Are 2 Pounds at $4