The following company information is available: $$\begin{array} { l l }
\text { Direct materials used for production } & 712 \text { pounds } \
\text { Standard quantity for units produced } & 750 \text { pounds } \
\text { Stardard cost per pound of direct material } & \$ 48 \
\text { Actual cost per pound of direct material } & \$ 50
\end{array}$$ The direct materials quantity variance is:
A)$1,824 favorable
B)$1,424 favorable
C)$400 favorable
D)$1,824 unfavorable
E)$1,424 unfavorable

Question

The following company information is available: $$\begin{array} { l l } 
\text { Direct materials used for production } & 712 \text { pounds } \
\text { Standard quantity for units produced } & 750 \text { pounds } \
\text { Stardard cost per pound of direct material } & \$ 48 \
\text { Actual cost per pound of direct material } & \$ 50
\end{array}$$ The direct materials quantity variance is:
A)$1,824 favorable
B)$1,424 favorable
C)$400 favorable
D)$1,824 unfavorable
E)$1,424 unfavorable

Quizplus · Accepted Answer

The direct materials quantity variance is calculated as (Standard Quantity - Actual Quantity) x Standard Cost per Pound. Here, (750 - 712) x $48 = $1,824 favorable.

The Following Company Information Is Available The Direct Materials Quantity Variance Is: A)$1,824 Favorable B)$1,424 Favorable

The Following Company Information Is Available The Direct Materials Quantity Variance Is:
A)$1,824 Favorable
B)$1,424 Favorable