24 October, 04:05

# Casivant Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.8pounds per unitStandard price\$4.00per pound The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of \$117,040. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:

+4
1. 24 October, 04:15
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Direct material quantity variance = \$3,880 unfavorable

Explanation:

Giving the following information:

Standard quantity of 3.8 pounds per unit

Standard price = \$4.00 per pound

The company produced 7,300 units in November using 28,710 pounds of the material.

To calculate the direct material quantity variance is calculated using the following formula:

Direct material quantity variance = (standard quantity - actual quantity) * standard price

Direct material quantity variance = (3.8*7,300 - 28,710) * 4

Direct material quantity variance = (27,740 - 28,710) * 4

Direct material quantity variance = \$3,880 unfavorable