Fletcher Company collected the following data regarding prod

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity varlance. Direct materials standard (6 lbs. @ $2/lb.) Actual direct materlals used Actual finlshed units produced Actual cost of direct materials used $12 per finished unit 249,050 lbs. 41,000 units $495,660 O $2.440 unfavorable. O $3,660 unfavorable. C $2.440 favorable O $6100 unfavorable D $3660 favorable

Solution

Correct Answer is $6,100 Unfavourable Calculation of Direct Material Quantity Variance: Actual Quantity X Standard Price = 2,49,050 lbs X $2/lb = $ 4,98,100 Standard Quantity X Standard Price = (41,000 units X 6lbs) X $2/lb = $ 4,92,000 Direct Material Quantity Variance = $       6,100 Unfavourable