The following data relate to direct materials costs for
Materials cost per yard: standard, $1.90; actual, $2.04
Standard yards per unit: standard, 4.67 yards; actual, 5.02 yards
Units of production: 9,200
Calculate the direct materials quantity variance.
D) $ 6,118.00 unfavorable is the correct alternative
Direct materials quantity variance = [ Standard quantity - Actual quantity ] X Standard price
Standard quantity = 9,200 X 4.67 yards = 42,964 yards
Actual quantity = 9,200 X 5.02 yards = 46,184 yards
Standard price = $ 1.90 per Yard
Direct materials quantity variance = [ 42,964 - 46,184] X $ 1.90 = $ (6,118.00) unfavorable.
Because actual is higher than standard or budgeted performance.
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