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6 October, 19:12

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: Standard Costs Direct materials 2,500 kilograms at $8.50 Actual Costs Direct materials 2,600 kilograms at $8.75 The direct materials quantity variance is

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  1. 6 October, 20:22
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    Direct material quantity variance = $850 unfavorable

    Explanation:

    Giving the following information:

    The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: Standard Costs Direct materials 2,500 kilograms at $8.50 Actual Costs Direct materials 2,600 kilograms at $8.75

    Direct material quantity variance = (standard quantity - actual quantity) * standard price

    Direct material quantity variance = (2,500 - 2,600) * 8.5 = $850 unfavorable
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