Ask Question
19 November, 09:16

Perez, Inc. recently completed 58,000 units of a product that was expected to consume 4 pounds of direct material per finished unit. The standard price of the direct material was $7.50 per pound. If the firm purchased and consumed 236,000 pounds in manufacturing (cost = $1,721,500), the direct-material quantity variance would be figured as:

+3
Answers (1)
  1. 19 November, 12:26
    0
    Answer is direct-material quantity $30.000 (Unfavorable).

    Explanation:

    To calculate the Direct Material Quantity Variance = Standard Rate * (Actual Quantity - Standard Quantity Used for Actual Production)

    = 7.50 * (236.000 - 58.000*4) = $30.000 (Unfavorable)

    Answer is $30.000 (Unfavorable).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Perez, Inc. recently completed 58,000 units of a product that was expected to consume 4 pounds of direct material per finished unit. The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers