The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month:
The direct materials purchases variance is computed when the materials are purchased.What is the materials quantity variance for the month?
A) $6,550 Unfavorable
B) $15,982 Unfavorable
C) $16,104 Unfavorable
D) $6,600 Unfavorable

Question

The following materials standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:
 The direct materials purchases variance is computed when the materials are purchased.What is the materials quantity variance for the month?
A) $6,550 Unfavorable 
B) $15,982 Unfavorable 
C) $16,104 Unfavorable 
D) $6,600 Unfavorable

Quizplus · Accepted Answer

The materials quantity variance is calculated using the following formula: 
Materials Quantity Variance = (Actual Quantity Used - Standard Quantity Allowed) x Standard Price

Using the data provided: 
- Actual Quantity Used = 6,700 
- Standard Quantity Allowed = 5,500 
- Standard Price = $3

Materials Quantity Variance = (6,700 - 5,500) x $3 
= $3,600 Unfavorable

Therefore, the correct answer is C, $16,104 Unfavorable.

The Following Materials Standards Have Been Established for a Particular