Question

A manufacturing company has a standard quantity of direct materials of 6 pounds per unit at...

A manufacturing company has a standard quantity of direct materials of 6 pounds per unit at a standard price of $2.20 per pound. In April the actual material price was $2.40 per pound and the company produced 5,500 units. If the company experienced a favorable material quantity variance of $6,600 during the month, the actual quantity of material used was:

A.        30,000 pounds.

B.        33,000 pounds.

C.        35,750 pounds.

D.        36,000 pounds.

Homework Answers

Answer #1

ANSWER:

Standard direct materials per unit = 6 pounds

Standard direct materials price per pound = $2.20

Actual direct materials price per pound = $2.40

Number of units produced = 5,500

Standard direct materials allowed = Standard direct materials per unit * Number of units produced

Standard direct materials allowed = 6 * 5,500

Standard direct materials allowed = 33,000 pounds

Materials Quantity Variance = Standard direct materials price per pound * (Standard direct materials allowed - Actual direct materials used)

$6,600 = $2.20 * (33,000 - Actual direct materials used)

3,000 = 33,000 - Actual direct materials used

Actual direct materials used = 30,000 pounds

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