Benny Company budgeted 610 pounds of direct materials costing $18.00 per pound to make 8000 units of product. The company actually used 650 pounds of direct materials costing $30.00 per pound to make the 8000 units. What is the direct materials quantity variance?

Question

Quizplus · Accepted Answer

The direct materials quantity variance is calculated as (Actual Quantity - Standard Quantity) x Standard Price. The standard quantity for 8000 units is 610 pounds, but 650 pounds were used. The variance is (650 - 610) x $18 = $720 unfavorable.

Benny Company Budgeted 610 Pounds of Direct Materials Costing $18