Calculate the Direct Materials Quantity variance using the above information:
A) $4,512.50 Unfavorable
B) $4,512.50 Favorable
C) $4,750 Unfavorable
D) $4,750 Favorable

Question

Calculate the Direct Materials Quantity variance using the above information:
A) $4,512.50 Unfavorable 
B) $4,512.50 Favorable 
C) $4,750 Unfavorable 
D) $4,750 Favorable

Quizplus · Accepted Answer

Direct Materials Quantity Variance = (Standard Quantity of Inputs Allowed for Actual Output – Actual Quantity of Inputs Used) x Standard Price of Inputs

Standard Quantity of inputs allowed for actual output = 11,000 lbs of lotion x 0.5 lbs of glycerin per lb of lotion = 5,500 lbs of glycerin
Actual Quantity of Inputs Used = 5,000 lbs of glycerin
Standard Price of Inputs = $1.50 per lb
Direct Materials Quantity Variance = (5,500 lbs – 5,000 lbs) x $1.50 per lb = $750 Unfavorable

Therefore, the correct choice is C, $4,750 Unfavorable.

Calculate the Direct Materials Quantity Variance Using the Above Information