Cooper Company has a direct materials standard of 2 gallons of input at a cost of $7.50 per gallon.During July,Cooper Company purchased and used 13,000 gallons,paying $93,200.The direct materials quantity variance was $1,500 unfavorable.How many units were produced?
A)13,000 units
B)6,600 units
C)6,214 units
D)6,400 units

Question

Quizplus · Accepted Answer

The direct materials quantity variance is calculated as (Actual Quantity - Standard Quantity Allowed) x Standard Price. Given the variance is $1,500 unfavorable, we can set up the equation: (13,000 - 2x) x $7.50 = $1,500. Solving for x gives 6,400 units produced.

Cooper Company Has a Direct Materials Standard of 2 Gallons