The following data relate to direct materials costs for February:
Materials cost per yard: standard, $2.00; actual, $2.10
Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards
Units of production: 9,500
Calculate the direct materials quantity variance.
A) $4,512.50 unfavorable
B) $4,512.50 favorable
C) $4,750.00 unfavorable
D) $4,750.00 favorable

Question

Quizplus · Accepted Answer

Direct Materials Quantity Variance = (Standard quantity for actual output – Actual quantity used) x Standard price

Standard quantity for actual output = Standard yards per unit x Units of production = 4.5 yards/unit x 9,500 units = 42,750 yards

Actual quantity used = Actual yards per unit x units of production = 4.75 yards/unit x 9,500 units = 45,125 yards

Direct Materials Quantity Variance = (42,750 – 45,125) x $2.00 = $4,750.00 unfavorable.

The Following Data Relate to Direct Materials Costs for February