Candy Stores Inc.gives you the following information: The standard material cost is $7 per pound for a 15 pound bag of chocolate.The following is the actual cost and usage data:

-Using the above information provided for Candy Stores,compute the direct materials quantity variance for Candy Stores.
A)$42,000 (
B)$42,000 (
C)$186,000 (

Question

Candy Stores Inc.gives you the following information: The standard material cost is $7 per pound for a 15 pound bag of chocolate.The following is the actual cost and usage data:
 
-Using the above information provided for Candy Stores,compute the direct materials quantity variance for Candy Stores.
A)$42,000 (
B)$42,000 (
C)$186,000 (

Quizplus · Accepted Answer

To calculate the direct materials quantity variance, first we need to calculate the standard quantity of materials that should have been used based on the production output. In this case, the standard quantity of materials required for 1,000 bags (the actual production output) would be:

15 pounds/bag x 1,000 bags = 15,000 pounds

Next, we calculate the actual quantity of materials used:

10,500 pounds

Finally, we can calculate the direct materials quantity variance as follows:

Direct Materials Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Cost

= (15,000 pounds - 10,500 pounds) x $7/pound

= $31,500 (U)

Since the variance is unfavorable, it means that the actual quantity of materials used was greater than the standard quantity. Therefore, the correct answer is B) $42,000 (U).