Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and usage data, compute the direct materials quantity variance.
A) $45,000 (
B) $45,000 (
C) $54,000 (
D) $99,000 (

Question

Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and usage data, compute the direct materials quantity variance. 
A) $45,000 (
B) $45,000 (
C) $54,000 (
D) $99,000 (

Quizplus · Accepted Answer

Direct Materials Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Cost
Standard Quantity = 10 pounds
Actual Quantity = 9 pounds
Direct Materials Quantity Variance = (10 - 9) x $5 = $5,000 (U)
Thus, the best choice is B, which represents a $45,000 unfavorable variance, which is not possible based on the calculations.

Using the Standard Costs of $5 Per Pound for a 10