If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials quantity variance was $1,000 unfavorable.

Question

Quizplus · Accepted Answer

The direct materials quantity variance formula is (Standard Quantity - Actual Quantity) x Standard Price. Using the given numbers, the variance should be calculated as (1,000 - 800) x $11 = $2,200 unfavorable. Therefore, the statement is false that the variance was $1,000 unfavorable.

If the Standard to Produce a Given Amount of Product