The standard amount of materials required to make one unit of Product Q is 4 pounds. That's static budget showed a planned production of 5,900 units. During the period, the company actually produced 6,000 units of product. The actual amount of materials used averaged 3.9 pounds per unit. The standard price of material is $2 per pound. Based on this information, the materials usage variance was:

Material Quantity Variance=  2400 favorable

Explanation:

Given

Actual units = 6000

Planned Units = 5900

Actual Quantity used per unit= 3.9 pounds

Actual Quantity=3.9 pounds*6000= 23400 pounds

Standard quantity for actual units= 4* 6000= 24000

Standard quantity used per unit = 4 pounds

Standard Price = $ 2 per pound

Formula

Material Quantity Variance= (Standard Price) *( Actual Quantity- Standard Quantity)

Working

Material Quantity Variance= (4)*(23400- 24000)= 4 * 600= 2400 favorable

as the actual quantity is more than the standard quantity the variance is favorable.

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