Farrar Industries reported the following results from its most recent quarter: What is Farrar's direct material quantity variance?

Question

Farrar Industries reported the following results from its most recent quarter:  What is Farrar's direct material quantity variance?

Quizplus · Accepted Answer

The direct material quantity variance is calculated as follows:
Actual quantity of material used - Standard quantity of material allowed x Standard price per unit of material.
Using the information provided in the table, the calculation would be: 
(44,000 – 41,000) x $0.25 = $2,875 unfavorable.

Farrar Industries Reported the Following Results from Its Most Recent