Question

During June, Zinc Company produced 10,000 chainsaw blades. The standard quantity of material allowed per unit was 2 pounds of steel per blade at a standard cost of $5 per pound. Zinc determined that it had a favorable materials usage variance of $1,500 for June. Calculate the actual quantity of materials used by Zinc Company in June.

Answer 1

Answer:

actual quantity= 19,700 pounds

Explanation:

Giving the following information:

Units= 10,000

The standard quantity of material allowed per unit was 2 pounds of steel per blade at a standard cost of $5 per pound.

Favorable materials usage variance of $1,500 for June.

To calculate the actual material quantity, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

1,500= (20,000 - actual quantity)*5

1,500= 100,000 - 5 actual quantity

-98,500/(-5)= actual quantity

19,700= actual quantity

Answer 2

Using the details provided, we can calculate that the actual quantity of materials used by Zinc company was 19,700 pounds

We are given the material usage variance which is calculated as;

= (Standard quantity - Actual quantity) x Standard cost per unit

Standard quantity:

= 2 x 10,000

= 20,000 pounds

We can therefore solve for actual quantity as:

1,500 = (20,000 - A) x 5

20,000 - A = 1,500 / 5

20,000 - 300 = A

A = 19,700 pounds

In conclusion, 19,700 pounds was the actual quantity.

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