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10 July, 14:07

The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.97; actual, $2.05 Yards per unit: standard, 4.67 yards; actual, 5.08 yards Units of production: 9,300 The direct materials quantity variance is a.$7,816.65 favorable b.$7,511.61 favorable c.$7,816.65 unfavorable d.$7,511.61 unfavorable

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  1. 10 July, 14:20
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    correct option is d.$7,511.61 unfavorable

    Explanation:

    given data

    standard material cost = $1.97 per yard

    Actual material cost = $2.05 per yard

    Standard yards = 4.67 per unit

    Actual yards = 5.08 per unit

    Units of production = 9300

    solution

    we get here Direct material quantity variance that is express as

    Direct material quantity variance = (Standard quantity - actual quantity) * Standard rate ... 1

    put here value and we will get

    Direct material quantity variance = (9300 * 4.67 - 9300 * 5.08) * 1.97

    Direct material quantity variance = - 7511.61

    so correct option is d.$7,511.61 unfavorable
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