Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials quantity variance? a. $1,020 favorable b. $900 favorable c. $1,020 unfavorable d. $900 unfavorable

Question

Business

Charlotte Ayala

29 October, 11:20

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials quantity variance? a. $1,020 favorable b. $900 favorable c. $1,020 unfavorable d. $900 unfavorable

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Answers (2)

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Blimpie · Answer 1

c. $1,020 unfavorable

Explanation:

Direct materials quantity variance = SP x (SQ - AQ)

Where

SQ = Standard quantity

SP = Standard price

AQ = Actual quantity

AP = Actual price

Direct materials quantity variance = $5.10 (4800 - 5000)

= $5.10 * - 200

= $1,020 unfavorable

The right option is c. $1,020 unfavorable

Mariyah Black · Answer 2

Mariyah Black 29 October, 15:19

0

A. $1,020 unfavorable.