The following data relates to QA firm: Purchase price of direct materials per kg $2.60 Direct materials purchased 25,000kg Direct materials used for production 23,100 kg Standard quantity of direct materials allowed 23,400 kg Direct materials price variance (unfavourable) $2,500 Actual number of units produced $7,800 Calculate the direct material quantity variance. Select one: a. $750 (F) b. $800 (F) c. $750 (U) d. $780 (F)
direct material quantity variance is the difference between the actual quantity that is allowed and the quantity that has been used to produce the goods.
the variance here means that quantity and price that has been used over the budget.
direct material allowed is 23100
direct material used is 23400
difference is of 300 units
price per unit is $2.60
quantity variance is (300*price per unit $2.60)
780
The following data relates to QA firm: Purchase price of direct materials per kg $2.60 Direct...