Answer (A) is correct . The total direct materials quantity variance is found by multiplying the difference between the standard quantity and actual quantity by the standard price. Standard quantities are calculated by multiplying the actual units by the standard quantity per unit. The standard quantities are 2,200 parts (2,200?× 1) for housing units, 4,400 parts (2,200 × 2) for printed circuit boards, and 8,800 parts (2,200 × 4) for reading heads. Thus, the total direct materials quantity variance is Housing units: (2,200 – 2,200) × $20 = $ ??????0 Printed circuit boards: (4,400 – 4,700) × $15 = 4,500 U Reading heads: (8,800 – 9,200) × $10 = 4,000 U ? ? ? $8,500 U
Answer (B) is incorrect because Reversing the order of subtraction results in $8,500 favorable.
Answer (C) is incorrect because Multiplying by the actual price results in $9,200 unfavorable.
Answer (D) is incorrect because Multiplying by the actual price and reversing the order of subtraction results in $9,200 favorable.
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What is Funtime’s total direct materials quantity variance?
