Casivant Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.8pounds per unitStandard price$4.00per pound The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:

Direct material quantity variance= $3,880 unfavorable

Explanation:

Giving the following information:

Standard quantity of 3.8 pounds per unit

Standard price= $4.00 per pound

The company produced 7,300 units in November using 28,710 pounds of the material.

To calculate the direct material quantity variance is calculated using the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (3.8*7,300 - 28,710)*4

Direct material quantity variance= (27,740 - 28,710)*4

Direct material quantity variance= $3,880 unfavorable

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