The standard quantity of materials for a product was 62 pounds per unit at the standard price of $3)10 per pound. The actual price per pound of materials was $3.25, and the actual quantity used was 67 pounds. An analysis would indicate

Question

Quizplus · Accepted Answer

To calculate the quantity variance, we use the formula:

Quantity Variance = (Actual Quantity - Standard Quantity) x Standard Price

= (67 - 62) x $3.10

= $15.5 (Favorable)

To calculate the price variance, we use the formula:

Price Variance = (Actual Price - Standard Price) x Actual Quantity

= ($3.25 - $3.10) x 67

= $10.05 (Unfavorable)

Therefore, the best choice is D: $10.05 unfavorable price variance.

The Standard Quantity of Materials for a Product Was 62