The following company information is available. The direct materials quantity variance is:
A) $10,000 unfavorable.
B) $13,200 unfavorable.
C) $9,600 unfavorable.
D) $10,000 favorable.
E) $13,200 favorablE.

Question

The following company information is available. The direct materials quantity variance is: 
A) $10,000 unfavorable. 
B) $13,200 unfavorable. 
C) $9,600 unfavorable. 
D) $10,000 favorable. 
E) $13,200 favorablE.

Quizplus · Accepted Answer

The direct materials quantity variance measures the difference between the actual quantity of materials used and the standard quantity allowed for the output achieved. Since the variance is unfavorable, it means that we used more materials than we should have. From the given data, we can calculate the direct materials quantity variance as follows:
Actual quantity used = 35,000 units
Standard quantity allowed = 30,000 units
Standard price = $4 per unit
Direct materials quantity variance = (Actual quantity used - Standard quantity allowed) x Standard price
= (35,000 - 30,000) x $4
= 20,000
Therefore, the direct materials quantity variance is $9,600 unfavorable (Option C)

The Following Company Information Is Available