f Preble had purchased 188,000 pounds of materials at $7.20 per pound and used 170,000 pounds in production, what would be the materials quantity variance for March?
Standard cost
Direct Material: 6 pounds at $8 per pound 48
Direct labour :4 hours at $13 per hour 52
Variable overhead 4 hours at $5 per hour 20
The planning budget for for March is to produce and sell 20,000 units but the However during March the company actually produce 25,500 units
Answer:
Material quantity Variance =$122,400 unfavorable
Explanation:
Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.
It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price
Pounds
25,500 should have used (25,500× 6) 153,000
but did use 170,000
Quantity variance 17,000
Standard price × $7.20
Material quantity Variance $122,400 unfavorable
Material quantity Variance =$122,400
