A Company has a material standard of 1.1 pound per unit of output. Each pound has a standard price of $25 per pound. During July, A Company paid $118,800 for 5,100 pounds, which they used to produce 4,900 units. What is the direct materials quantity variance?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A Company has a material standard of 1.1 pound per unit of output. Each pound has a standard price of $25 per pound. During July, A Company paid $118,800 for 5,100 pounds, which they used to produce 4,900 units. What is the direct materials quantity variance? 

**Problem Statement:**

A company has a material standard of 1.1 pounds per unit of output. Each pound has a standard price of $25 per pound. During July, the company paid $118,800 for 5,100 pounds, which they used to produce 4,900 units. What is the direct materials quantity variance?

Enter the variance without a $ sign and as a positive value. For example, if your calculation yields the result of -2,123, enter 2,123.

**Answer Entry:**

Type your answer...
Transcribed Image Text:**Problem Statement:** A company has a material standard of 1.1 pounds per unit of output. Each pound has a standard price of $25 per pound. During July, the company paid $118,800 for 5,100 pounds, which they used to produce 4,900 units. What is the direct materials quantity variance? Enter the variance without a $ sign and as a positive value. For example, if your calculation yields the result of -2,123, enter 2,123. **Answer Entry:** Type your answer...
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