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Etcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance
Direct materials standard (6 įbs. e $2/lb.) S 12 per finished unit
Actual direct materials used 279,300 Ibs
Actual finished units produced 46,000 units
Actual cost of direct materials used $556,110
Multiple Choice
a. $2.490 favorable.
b. $4,110 unfavorable.
c. $6,600 unfavorable.
d. $2,490 unfavorable.
e. $4,110 favorable.

Respuesta :

ahmedgodtrust

Answer:

Direct material quantity variance

= (Standard quantity - Actual quantity used) x Standard price

= (6 x 46,000 - 279,300)  x $2

= $6,600(A)

The correct answer is C                                                                                                                                                                                                                                                                                                                                                                                            

Explanation:

Direct material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price.

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