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30 March, 12:36

Casivant Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.8pounds per unitStandard price$4.00per pound The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:

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  1. 30 March, 14:21
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    Direct material quantity variance = $3,880 unfavorable

    Explanation:

    Giving the following information:

    Standard quantity of 3.8 pounds per unit

    Standard price = $4.00 per pound

    The company produced 7,300 units in November using 28,710 pounds of the material.

    To calculate the direct material quantity variance is calculated using the following formula:

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

    Direct material quantity variance = (3.8*7,300 - 28,710) * 4

    Direct material quantity variance = (27,740 - 28,710) * 4

    Direct material quantity variance = $3,880 unfavorable
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