Question

Oliver Enterprises has collected the following data for one of its products: Direct materials standard (8 pounds per unit @ $0.44/lb.) $3.52 per finished good Direct materials flexible budget variance - unfavorable $13,000 Actual Direct Materials Used (AQU) 40,000 pounds Actual finished goods produced 20,000 units How much is the direct materials quantity variance?

Name: oliver enterprises has collected the following data for one of its products direct materials standard 8 pounds per unit 044lb 352 per finished good direct materials flexible budget varianceu 06073
Uploaded: 2022-05-01T21:41:16-08:00
Duration: 2 min 51 s
Channel: Rahul Mahato
Description: oliver enterprises has collected the following data for one of its products direct materials standard 8 pounds per unit 044lb 352 per finished good direct materials flexible budget varianceu 06073

          Oliver Enterprises has collected the following data for one of its products:
Direct materials standard (8 pounds per unit @ $0.44/lb.)
$3.52 per finished good
Direct materials flexible budget variance - unfavorable
$13,000
Actual Direct Materials Used (AQU)
40,000 pounds
Actual finished goods produced
20,000 units
How much is the direct materials quantity variance?

Added by Michael R.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Rahul Mahato

05/01/2022

Step 1

Standard quantity = Actual production units x Standard quantity per unit Standard quantity = 20,000 units x 8 lbs per unit Standard quantity = 160,000 lbs Show more…

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Oliver Enterprises has collected the following data for one of its products: Direct materials standard (8 pounds per unit @ $0.44/lb.) $3.52 per finished good Direct materials flexible budget variance - unfavorable $13,000 Actual Direct Materials Used (AQU) 40,000 pounds Actual finished goods produced 20,000 units How much is the direct materials quantity variance?