The Southside Corporation budgeted 4,400 pounds of direct materials to make 2,600 units of product.The company actually used 4,800 pounds of direct materials to make the 2,600 units.The direct materials quantity variance is $1,500 unfavorable.What is the Standard Price (SP)per pound of direct materials?

Question

Quizplus · Accepted Answer

D)
Material Quantity Variance = (Actual Quantity (AQ)used - Standard Quantity Allowed (SQA))× Standard Price (SP)
$1500 = (4,800 - 4,400 )× Standard Price (SP)
Standard Price (SP)= 1500 / 400 = $3.75

The Southside Corporation Budgeted 4,400 Pounds of Direct Materials to Make