Question

The standards for direct materials in making a certain product are 20 pounds at $0.5 per pound. During the past period, 51,000 units of product were made and the materials quantity variance was $34,000U. The number of pounds of direct material used during the period amounted to:

Answer 1

Ans.	*Calculations for standard quantity :
	*Standard quantity (SQ)   =   Actual output * Materials quantity per unit of output
	51,000 units * 20 pounds per unit
	1,020,000	pounds
	*Calculations for acutal quantity used :
	Materials quantity variance = (Standard quantity - Actual quantity) * Standard price
	-$34,000 = (1,020,000 - Actual quantity) * $0.5
	-$34,000 / $0.5 = 1,020,000 - Actual quantity
	-68,000 = 1,020,000 - Actual quantity
	Actual quantity = 1,020,000 + 68,000
	Actual quantity used = 1,088,000