The following information is for Doran Corporation:
* Direct material is measured in pounds
-The usage variance for direct material is
A) $10,000 unfavourable.
B) $9,000 unfavourable.
C) $9,000 favourable.
D) $10,000 favourable.

Question

The following information is for Doran Corporation:
  * Direct material is measured in pounds
-The usage variance for direct material is
A) $10,000 unfavourable. 
B) $9,000 unfavourable. 
C) $9,000 favourable. 
D) $10,000 favourable.

Quizplus · Accepted Answer

The usage variance for direct material is calculated as the difference between the standard quantity allowed for actual production and the actual quantity used, multiplied by the standard price. The problem states a $10,000 unfavourable variance, indicating that more material was used than expected.

The Following Information Is for Doran Corporation