The following information is available for Bear Manufacturing Company. - - Direct materials price standard is $3.50 per pound. - - Direct materials quantity standard is six pounds per finished unit. - - Budgeted production is 25,000 finished units. - - 175,000 pounds of direct materials were purchased for $550,000. - - 175,000 pounds of direct materials were used in production. - - 26,000 finished units of product were produced. What is the direct materials quantity variance?

Question

Business

Emily Jenkins

9 September, 02:38

The following information is available for Bear Manufacturing Company. - - Direct materials price standard is $3.50 per pound. - - Direct materials quantity standard is six pounds per finished unit. - - Budgeted production is 25,000 finished units. - - 175,000 pounds of direct materials were purchased for $550,000. - - 175,000 pounds of direct materials were used in production. - - 26,000 finished units of product were produced. What is the direct materials quantity variance?

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Answers (1)

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Jayda Mcdaniel · Answer 1

Direct material quantity variance = $66,500 unfavorable

Explanation:

Giving the following information:

Direct materials price standard is $3.50 per pound.

Direct materials quantity standard is six pounds per finished unit.

175,000 pounds of direct materials were used in production.

26,000 finished units of product were produced

To calculate the direct material quantity variance, we need to use the following formula:

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

Direct material quantity variance = (26,000*6 - 175,000) * 3.5

Direct material quantity variance = $66,500 unfavorable