Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,640 pounds of material, $5.30; and standard costs for 4,430 pounds of material at $6.10 per pound.

What is the direct materials quantity variance?

a) $3,712 unfavorable

b) $3,712 favorable

c) $1,281 favorable

d) $1,281 unfavorable

Option (D) is correct.

Explanation:

Direct material quantity variance:

= [Standard quantity * Standard price] - [Actual quantity * Standard price ]

= [4,430 * $6.10] - [4,640 * $6.10]

= $27,023 - $28,304

= $1,281 unfavorable

Therefore, the direct materials quantity variance is $1,281 unfavorable.

The variance is unfavorable as the actual quantity of materials used is more than standard quantity.