Asked by Alyssa Sweeting on May 10, 2024
Verified
If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials quantity variance is $2,200 unfavorable.
Direct Materials Quantity Variance
The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of material.
Units
Basic quantities or measures used to express the amount, level, or extent of something.
- Comprehend the fundamentals of variance analysis, including the process for calculating and deciphering distinct variances.
Verified Answer
9A
9GG#SoNe alwaysMay 16, 2024
Final Answer :
False
Explanation :
The direct materials quantity variance is calculated as (Standard Quantity - Actual Quantity) x Standard Price. In this case, it would be (1,000 units - 800 units) x $11 = 200 units x $11 = $2,200 favorable, not unfavorable, because less material was used than expected.
Learning Objectives
- Comprehend the fundamentals of variance analysis, including the process for calculating and deciphering distinct variances.
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