A company had a $56,000 unfavorable direct material quantity variance during a time period when the standard price per pound of direct material was $7 and the actual price per pound of direct material was $7.50.If the standard quantity of direct material allowed for production was 52,000 pounds,how many pounds of direct material were actually used during this period?
A) 60,000 pounds
B) 44,000 pounds
C) 56,000 pounds
D) 364,000 pounds
E) 420,000 pounds

Question

Quizplus · Accepted Answer

$7 (actual pounds - 52,000 pounds) = $56,000 U
$7 (8,000) = $56,000 U
The variance is unfavorable, therefore
Actual pounds - 52,000 = 8,000 pounds
Actual pounds = 60,000 pounds

A Company Had a $56,000 Unfavorable Direct Material Quantity Variance