Baskets inc. gathered the following actual results for the current month: actual amounts: units produced 5600 direct materials purchased and used (7800 lbs.) $70,200 budgeted production and standard costs were: budgeted production 5300 units direct materials 2.0 lbs/unit at $3/lb. what is the direct materials quantity variance?

Direct Material Quantity Variance = $10200 Fav

Explanation:

given data

Units produced =  5600

Direct materials purchased and used (7800 lbs.) = $70,200

Budgeted production = 5300 units

Direct materials 2.0 lbs/unit =  $3/lb

to find out

direct materials quantity variance

solution

we get here Direct Material Quantity Variance that is express as

Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) × Standard Rate     1

so put here value we get

Direct Material Quantity Variance = ( 5600 × 2.0 - 7800 ) × 3

Direct Material Quantity Variance = (11200 - 7800 ) × 3

Direct Material Quantity Variance = $10200 Fav

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