Standard cost per unit 3 pounds at $2 per unit
Actual cost per unit 2.5 pounds at $3 per unit
6000 pounds of raw materials purchased during the month. 2,000 units were manufactured during the month and 5000 pounds of raw material were used in production. What is the direct material quantity variance?
3pounds =2 dollars
actual cost 2.5 pounds =3 dollars
6000/3 x 2=4000 dollars per unit
5000/2.5 x 3=6000 dollars per unit
total cost = 6000 + 4000
10,000 dollars per unit
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