If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual direct materials used are 1,600 units at $13, the direct materials quantity variance is $5,200 favorable.

Question

Quizplus · Accepted Answer

The direct materials quantity variance is calculated as (Standard Quantity - Actual Quantity) * Standard Price. In this case, it would be (2000 - 1600) * $12 = 400 * $12 = $4,800 favorable.

If the Standard to Produce a Given Amount of Product