Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.What is the direct materials quantity variance?
A) $1,020 favorable
B) $1,020 unfavorable
C) $900 favorable
D) $900 unfavorable

Question

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $​4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials quantity variance?
A) ​$1,020 favorable
B) ​​$1,020 unfavorable
C) ​$900 favorable
D) ​$900 unfavorable

Quizplus · Accepted Answer

The direct materials quantity variance is calculated as (Actual Quantity - Standard Quantity) x Standard Price. Here, it is (5,000 - 4,800) x $5.10 = 200 x $5.10 = $1,020 unfavorable, because actual quantity used is more than the standard quantity allowed.

Myers Corporation Has the Following Data Related to Direct Materials