The standard quantity allowed for the units produced was 4,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $375 favorable. Each unit uses 1 pound of materials. How many pounds were actually used?

Question

Quizplus · Accepted Answer

The materials quantity variance is calculated as (Standard Quantity - Actual Quantity) x Standard Price. Given a favorable variance of $375, the equation is (4,500 - Actual Quantity) x $2.50 = $375. Solving for Actual Quantity gives 4,350 pounds.

The Standard Quantity Allowed for the Units Produced Was 4,500