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Homework answers / question archive / You are given the following information for ABC company which produces and sells tables: Standard Inputs Expected Standard Price Expected For Each Unit of Output Per Unit of Input Direct Materials 10 pounds $4 per pound Direct Labor 3 hours $16 per hour Production of 200 tables was expected in July, but 220 tables were actually completed
You are given the following information for ABC company which produces and sells tables:
Standard Inputs Expected Standard Price Expected
For Each Unit of Output Per Unit of Input
Direct Materials 10 pounds $4 per pound
Direct Labor 3 hours $16 per hour
Production of 200 tables was expected in July, but 220 tables were actually completed. Direct materials purchased and used were 2,000 pounds at an actual price of $4.40 per pound. Direct labor cost for the month was $10,620, and the actual pay per hour was $18.00. What is the direct material quantity variance for July?
Select one:
a.
$880 Favorable
b.
$800 Favorable
c.
$880 Unfavorable
d.
$800 Unfavorable
Direct material quantity variance= Standard cost of standard quantity for actual production-Standard cost of actual quantity
=(Standard quantity -Actual quantity)standard price
=((220*10)-2000)$4
=$800
option B.$800 favarable
