Atkins, Inc.produces a product requiring 8 pounds of material at $1.50 per pound.Atkins produced 10,000 units of this product during 2013 resulting in a $30,000 unfavorable materials quantity variance.How many pounds of direct material did Atkins use during 2013?

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Quizplus · Accepted Answer

The unfavorable materials quantity variance indicates that Atkins used more pounds of material than allowed. The variance is calculated as (Actual quantity - Standard quantity) x Standard price. In this case, the variance is $30,000, the standard price is $1.50 per pound, and the standard quantity is 8 pounds per unit. Therefore, the actual quantity used is (30,000 / 1.50) + (8 x 10,000) = 100,000 pounds.