A company established a direct material standard of 2 pounds of material at a cost of $6 per pound for unit produced.During August the company produced 6,000 units of product.10,000 pounds of direct material which cost $6.50 per pound were used in the production process.Compute the direct material quantity variance for August.
A) $5,000 unfavorable
B) $12,000 unfavorable
C) $5,000 favorable
D) $12,000 favorable
E) $7,000 favorable

Question

Quizplus · Accepted Answer

$6 (10,000 pounds - (6,000 x 2))= $12,000 F

A Company Established a Direct Material Standard of 2 Pounds