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 | Select an option Not ApplicableFavorableUnfavorable |

Answer #1

Standard price = $6 per yard

Standard quantity = 1.1 yard per swimsuit

Actual output = 760 swimsuits

Hence, standard quantity for actual output = 760 x 1.2

= 836 yards

Actual quantity of material used = 933 yards

Direct material quantity variance = Standard price x (Standard
quantity - Actual quantity)

= 6 x (836 - 933 )

= $582 (Unfavorable)

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**Thanks**

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.)
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