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The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11200 gallons of direct materials that actually cost $42400 were used to produce 6000 units of product. The direct materials quantity variance for last month was

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Answer:

$3,200 Favorable

Explanation:

For the computation of direct materials quantity variance first we need to find out the standard quantity which is shown below:-

Standard quantity = Standard quantity per unit × Number of units produced

= 2 gallon × 6,000

= 12,000

Direct materials quantity variance = (Standard quantity - Actual quantity) × Standard Price

= (12,000 - 11,200) × $4

= 800 × $4

= $3,200 Favorable

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