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16 September, 20:42

The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram. The production of the product in April was 870 units, but production had been budgeted for 850 units. During April, 8,200 kilograms of the raw material were purchased for $6,888. All raw materials purchased were used. The material quantity variance for April was:

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  1. 16 September, 21:02
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    Direct material quantity variance = $992 unfavorable

    Explanation:

    Giving the following information:

    Standard quantiy = 8kg

    Standard cost = $0.8 per kilogram

    Production = 870 unit

    8,200 kilograms of the raw material was purchased for $6,888.

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

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

    Standard quantity = 870*8 = 6,960kg

    Direct material quantity variance = (6,960 - 8,200) * 0.8

    Direct material quantity variance = $992 unfavorable
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