Question

Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:

Direct materials standard (5 lbs @ $1/lb)	$5	per finished unit
Total direct materials cost variance—unfavorable	$23,250
Actual direct materials used	180,000	lbs.
Actual finished units produced	30,000	units

Answer 1

Calculation of Material Quantity Variance:

Material Quantity Variance
(	Standard Quantity	-	Actual Quantity	)	x	Standard Rate
(	150,000	-	170000	)	x	$              1.00
	-30000
	Variance		$ 30,000.00			Unfavourable-U

.

Standard DATA for	30000	Units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct Material	( 5 pounds x 30000 Units)=150,000 pounds	$                   1.00	$ 150,000.00