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16 January, 09:33

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials quantity variance? a. $1,020 favorable b. $900 favorable c. $1,020 unfavorable d. $900 unfavorable

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Answers (2)
  1. 16 January, 10:02
    0
    c. $1,020 unfavorable

    Explanation:

    Direct materials quantity variance = SP x (SQ - AQ)

    Where

    SQ = Standard quantity

    SP = Standard price

    AQ = Actual quantity

    AP = Actual price

    Direct materials quantity variance = $5.10 (4800 - 5000)

    = $5.10 * - 200

    = $1,020 unfavorable

    The right option is c. $1,020 unfavorable
  2. 16 January, 12:13
    0
    A. $1,020 unfavorable.
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