A company provided the following direct materials cost information. Compute the direct materials quantity variance.
A) $78,250 Favorable.
B) $2,750 Unfavorable.
C) $2,750 Favorable.
D) $2,500 Favorable.
E) $2,500 Unfavorable.

Question

A company provided the following direct materials cost information. Compute the direct materials quantity variance. 
A) $78,250 Favorable. 
B) $2,750 Unfavorable. 
C) $2,750 Favorable. 
D) $2,500 Favorable. 
E) $2,500 Unfavorable.

Quizplus · Accepted Answer

Direct materials quantity variance = $2.00 standard cost per unit × (405,000 standard units − 403,750 actual units) = $2,500 favorable

A Company Provided the Following Direct Materials Cost Information