Answer:
Direct materials quantity variance = $1,536 unfavorable
Explanation:
Direct materials quantity variance is the figure obtained when the standard cost is deducted from the actual quantity at standard price. This also known as the direct material usage/efficiency variance.
The direct materials quantity variance can be calculated using the following formula:
Direct materials quantity variance = (Standard Quantity – Actual Quantity) * Standard Price
For this question, we have:
Standard Quantity = Standard pounds of materials used = 4,420
Actual Quantity = Actual pounds of materials used = 4,660
Standard Price = Standard price per pound = $6.40
Therefore, we substitute and have:
Direct materials quantity variance = (4,420 - 4,660) * $6.40 = $1,536 unfavorable
Note that it is unfavorable because the actual pounds of materials used is less than standard pounds of materials used.
