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Summerlin Company budgeted 4,000 pounds of material costing $4.00 per pound to produce 2,100 units. The company actually used 4,500 pounds that cost $4.10 per pound to produce 2,100 units. What is the direct materials quantity variance?

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esarango28

Answer:

The correct answer is $2,450

Explanation:

The units are the same, so we going to work with the cost and the pounds.

4,000 pounds x cost per pound $4.00= (4,000*4)= 16,000

4,500 pounds x cost per pound $4.10= (4,500*4.1)= 18,450

18,450 - 16,000= $2,450

The direct materials variance is $2,450

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