The company produced 5,600 units during the month. A total of 14,700 pounds of material were purchased at a cost of $41,160.There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,940 pounds of material remained in the warehouse. During March, 3,000 direct labor-hours were worked at a rate of $19.50 per hour. Variable manufacturing overhead costs during March totaled $6,950. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is:

-$3,500 Unfavorable

Explanation:

For computation of materials quantity variance for March firstly we need to find out the standard quantity and actual quantity which is shown below:-

Standard quantity = Production units × Standard quantity of direct material

= 5,600 × 2.0

= 11,200

and

Actual quantity = Total pounds of material - Ending pounds of material

= 14,700 - 2,940

= 11,760

Now, we will put these value by using the formula of material quantity variance for march which is shown below:

Materials quantity variance for March = (Standard quantity - Actual quantity) × Standard price

= (11,200 - 11,760) × $6.25

= -$560 × $6.25

= -$3,500 Unfavorable

The unfavorable variance is the variance at which the actual cost is more than the standard cost and the same is to be considered

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