The following data relate to direct materials costs for November: What is the direct materials quantity variance?
A) $3,600 favorable
B) $1,240 favorable
C) $3,600 favorable.
D) $1,240 unfavorable.

Question

The following data relate to direct materials costs for November:  What is the direct materials quantity variance?
A) $3,600 favorable 
B) $1,240 favorable 
C) $3,600 favorable. 
D) $1,240 unfavorable.

Quizplus · Accepted Answer

To calculate direct materials quantity variance, we use the formula:
DMQV = (Actual Quantity - Standard Quantity) x Standard Price

Actual Quantity = 23,000 lbs
Standard Quantity = 22,000 lbs
Standard Price = $0.50 per lb

DMQV = (23,000 - 22,000) x $0.50 = $500 (unfavorable)

Therefore, the correct answer is D, $1,240 unfavorable, as it reflects the difference between the actual direct materials quantity and the standard quantity which resulted in a negative impact on costs.

The Following Data Relate to Direct Materials Costs for November