Question

In producing jelly beans, 4,700 pounds of direct materials were used at a cost of $2.50 per pound. The standard was 4,000 pounds at $2.75 per pound. What is the direct materials quantity variance

Answer 1

Answer:

Direct material quantity variance   = $1,925 favorable

Explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price

                                                                                              Pounds

Standard quantity for the actual production                     4,700

Actual quantity used                                                         4,000

Direct material quantity variance in units                      700 favorable

Standard price perv unit                                                × $2.75

Direct material quantity variance                                   $1925  Favorable

Direct material quantity variance   = $1,925