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.

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