Use the following to answer questions
J & C Electronics, Inc. gathered the following direct materials cost information for the month of March:

-The direct materials usage variance is:
A)$4,250U
B)$4,425F
C)$6,800U
D)$7,080F

Question

Use the following to answer questions 
J & C Electronics, Inc. gathered the following direct materials cost information for the month of March:
 
-The direct materials usage variance is:
A)$4,250U 
B)$4,425F 
C)$6,800U 
D)$7,080F

Quizplus · Accepted Answer

The direct materials usage variance is the difference between the actual quantity of materials used and the standard quantity of materials that should have been used. In this case, the actual quantity of materials used was 10,000 pounds, and the standard quantity of materials that should have been used was 9,500 pounds. The difference between these two quantities is 500 pounds. The standard price of materials is $8.50 per pound, so the direct materials usage variance is 500 pounds * $8.50 per pound = $4,250. Since the actual quantity of materials used was greater than the standard quantity of materials that should have been used, the variance is unfavorable, so the correct answer is B) $4,425F.

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