Summerlin Company budgeted 4,200 pounds of material costing $4.00 per pound to produce 2,300 units. The company actually used 4,700 pounds that cost $4.10 per pound to produce 2,300 units. What is the direct materials quantity variance?

A. $420 unfavorable.

B. $470 unfavorable.

C. $2,000 unfavorable.

D. $2,470 unfavorable.

E. $2,050 unfavorable.

Option (C) is correct.

Explanation:

Given that,

Standard Quantity = 4,200

Actual Quantity = 4,700

Standard Price = $4

Cost = $4.10 per pound to produce 2,300 units

Direct Material Quantity variance:

= (Standard Quantity - Actual Quantity) * Standard Price

= (4,200 - 4,700) * $4

= $2,000 Unfavorable

Therefore, the direct materials quantity variance is $2,000 Unfavorable.