Question

Concord, Inc. makes high-quality swimsuits. During the year, the company produced 760 suits, using 933 yards of material, and the company purchased 772 yards of material for $4,805. The direct materials standard for the swimsuits allows 1.10 yards of material at a standard price of $6 per yard.

Calculate Concord’s direct materials quantity variance for the year. (If variance is zero, select "Not Applicable" and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 15.)

Direct material quantity variance

$Enter direct material quantity variance in dollars rounded to 0 decimal places

Answer 1

Direct material quantity variance

$ 582 Unfavorable

Working

Material Quantity Variance
(	Standard Quantity	-	Actual Quantity	)	x	Standard Rate
(	836	-	933	)	x	$              6.00
	-582
	Variance		$                 582.00			Unfavourable-U

.

Standard DATA for		760	Units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct Material	( 1.1 yards x 760 Units)=836 yards	$                   6.00	$               5,016.00