Exeter has a material standard of 1 pound per unit of output.Each pound has a standard price of $26 per pound.During July,Exeter paid $66,100 for 2,475 pounds,which they used to produce 2,350 units.What is the direct materials quantity variance?
A)$1,750 unfavorable
B)$1,300 favorable
C)$3,250 unfavorable
D)$4,550 unfavorable

Question

Quizplus · Accepted Answer

Direct materials quantity variance = (Actual Quantity - Standard Quantity) x Standard Price

Standard Quantity = Actual Output x Standard Quantity per Unit of Output 
Standard Quantity = 2,350 x 1 = 2,350 pounds

Direct materials quantity variance = (2,475 - 2,350) x $26 = $3,250 unfavorable.

Therefore, the correct choice is C.

Exeter Has a Material Standard of 1 Pound Per Unit