The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.97; actual, $2.05 Yards per unit: standard, 4.67 yards; actual, 5.08 yards Units of production: 9,300 The direct materials quantity variance is a.$7,816.65 favorable b.$7,511.61 favorable c.$7,816.65 unfavorable d.$7,511.61 unfavorable

correct option is d.$7,511.61 unfavorable

Explanation:

given data

standard material cost = $1.97 per yard

Actual material cost = $2.05 per yard

Standard yards = 4.67 per unit

Actual yards = 5.08 per unit

Units of production = 9300

solution

we get here Direct material quantity variance that is express as

Direct material quantity variance = (Standard quantity - actual quantity) * Standard rate ... 1

put here value and we will get

Direct material quantity variance = (9300 * 4.67 - 9300 * 5.08) * 1.97

Direct material quantity variance = - 7511.61

so correct option is d.$7,511.61 unfavorable