Kermit Enterprises has collected the following data on one of
its products:
Direct materials standard (3 lbs.@ $1.00/b.)
$3per finished unit
Total direct materials cost variance— favorable
$9,900
Actual direct materials used
250,800 lbs
Actual finished units produced
38,000 units
The direct materials quantity variance is:
$47,900 unfavorable.
$136,800 favorable.
$126,900 favorable.
$47,900 favorable.
$136,800 unfavorable.
Comment
Direct materials standard (3 lbs.@ $1.00/b.)
$3per finished unit
Total direct materials cost variance— favorable
$9,900
Actual direct materials used
250,800 lbs
Actual finished units produced
38,000 units
The direct materials quantity variance is:
$47,900 unfavorable.
$136,800 favorable.
$126,900 favorable.
$47,900 favorable.
$136,800 unfavorable.
Best answer
DM Quantity Variance = ( SQ ? AQ ) × SP= (38,000*3-250800)*1 = -136,800 (Unfavorable)
