The following company information is available for January:
$\begin{array}{llcc}
\text { Direct materials used } & \text { 2,500 feet @ \$ 55 per foot } \
\text { Standard costs for direct materials for January } & \text { 2,600 feet @ \$53 per foot } \
\text { production } \
\end{array}$

The direct material quantity variance is:
A)$5,000 favorable
B)$300 favorable
C)$5,300 unfavorable
D)$5,000 unfavorable
E)$5,300 favorable

Question

The following company information is available for January:  
$\begin{array}{llcc}
  \text { Direct materials used  } & \text {  2,500 feet @ \$ 55  per foot  }  \
  \text {  Standard costs for direct materials for January  } & \text { 2,600 feet @ \$53 per foot   }  \
  \text {  production }  \
\end{array}$

The direct material quantity variance is:
A)$5,000 favorable
B)$300 favorable
C)$5,300 unfavorable
D)$5,000 unfavorable
E)$5,300 favorable

Quizplus · Accepted Answer

The direct material quantity variance is unfavorable because the actual quantity used (2,500 feet) is less than the standard quantity allowed (2,600 feet). The unfavorable variance is calculated as follows:Unfavorable variance = (Standard quantity - Actual quantity) x Standard price= (2,600 feet - 2,500 feet) x $53 per foot= 100 feet x $53 per foot= $5,300

The Following Company Information Is Available for January The Direct Material Quantity Variance Is: A)$5,000 Favorable B)$300 Favorable

The Following Company Information Is Available for January The Direct Material Quantity Variance Is:
A)$5,000 Favorable
B)$300 Favorable