EA5. What if 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance?

Question

BlackTom AI · Accepted Answer

Direct materials quantity variance = (Actual quantity used − Standard quantity allowed for the output) × Standard price per unit.

Relevant concepts:
- Quantity (or usage) variance measures the cost effect of using more or fewer direct materials than the standard allowance for the actual output.
- A positive result (AQ > SQ) yields an unfavorable variance; a negative result yields a favorable variance.

Step-by-step calculation (using the standard parameters given earlier: standard quantity allowed = 5,000 pounds and standard price = $0.50 per pound):
1. Identify actual quantity (AQ): 9,500 pounds (given).
2. Identify standard quantity allowed (SQ): 5,000 pounds (from the standard).
3. Identify standard price (SP): $0.50 per pound (from the standard).
4. Compute the difference: AQ − SQ = 9,500 − 5,000 = 4,500 pounds.
5. Multiply by the standard price: Quantity variance = 4,500 × $0.50 = $2,250.

Interpretation: Because the actual quantity used (9,500 lb) exceeds the standard quantity allowed (5,000 lb), the variance is unfavorable; the firm used 4,500 more pounds than expected, costing an extra $2,250 at the standard price.

Why this answer is correct:
- The formula is the standard accounting definition for materials quantity variance.
- All intermediate arithmetic is shown: 9,500 − 5,000 = 4,500; 4,500 × 0.50 = 2,250.
- The sign (unfavorable) follows from AQ > SQ.

Other options: This is a numeric question with the computed result $2,250; any alternative numeric answers would be incorrect because they would reflect a different difference in pounds or a different standard price.

Conclusion: The direct materials quantity variance is $2,250 (unfavorable), which matches the provided correct answer of 2,250.

EA5. What if 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance?数值题

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