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direct material quantity variance

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Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for one unit of product.

Standard Standard Price Standard
Quantity or Rate Cost
Direct material 8 pounds $1.80 per pound $14.40
Direct labor 0.25 hour $8.00 per hour $2.00

During November, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. The total factory wages for November were $42,000, 90 percent of which were for direct labor. Arrow manufactured 19,000 units of product during November using 142,500 pounds of direct material and 5,000 direct labor hours.
Reference: 10-8

The direct material quantity variance for November is:

$1,100 favorable
$14,400 unfavorable
$17,100 favorable
$17,100 unfavorable

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The solution calculates direct material quantity variance.

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Answer:   $17,100 favorable
The materials quantity variance is the difference between the actual quantity of inputs used at the ...

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