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The following data relate to product no. 89 of Des Moines Corporation: Direct material standard: 3 square feet at $2.40 per square foot Direct material purchased: 29,000 square feet at $2.60 per square foot Direct material consumed: 28,100 square feet Manufacturing activity: 9,200 units completed. Assume that the company computes variances at the earliest point in time. The direct­ material quantity variance is:

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Answer:

Direct material quantity variance

= (Standard quantity - Actual quantity) x Standard price

= (27,600 - 28,100) x $2.40

= $1,200(A)

Standard quantity

= 3 square feet x 9,200 units

= 27,600 square feet

Explanation:

Direct material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price.

Standard quantity is obtained by multiplying the standard quantity per unit ( 3 square feet) by actual units completed (9,200 units).

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