The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound. The actual price per pound of materials was $1.50, and the actual quantity used was 44 pounds. An analysis would indicate

Question

Quizplus · Accepted Answer

The formula for calculating the material price variance is (AQ x AP) - (AQ x SP), where AQ is the actual quantity, AP is the actual price, and SP is the standard price.

Using this formula, we get:

(44 x $1.50) - (44 x $2.00) = -$8.00

This means that the actual cost of materials was $8.00 higher than the expected cost based on the standard cost. Therefore, the answer is D, a $8.00 unfavorable quantity variance.

The Standard Quantity of Materials for a Product Was 40