Accounting Homework: What is the Direct Materials Quantity Variance?

Posted on 2014-04-14 10:26:00 in Accounting by CHRISTINA

I know the formula is SP x (AQU - SQU)





Units of Finished Product Produced

Standard : 1000

Actual : 1056

Direct Material Cost per pound

S - $10.00

A - $9.95

Direct Material pounds purchased & used per finished unit

S - 5.0

A - 5.7

Direct Labor cost per hour

S - $25.00

A - $25.46

Direct Labor hours per finished unit

S - 40

A - 41



So it would be 10 x ((1056 x 5.7) - ( 1000 x 5))

Which is 10 x (6019.2-5000)

10192 Unfavorable, right?



What am I doing wrong?

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