During June, Zinc Company produced 10,000 chainsaw blades. The standard quantity of material allowed per unit was 2 pounds of steel per blade at a standard cost of $5 per pound. Zinc determined that it had a favorable materials usage variance of $1,500 for June. Calculate the actual quantity of materials used by Zinc Company in June.

actual quantity= 19,700 pounds

Explanation:

Giving the following information:

Units= 10,000

The standard quantity of material allowed per unit was 2 pounds of steel per blade at a standard cost of $5 per pound.

Favorable materials usage variance of $1,500 for June.

To calculate the actual material quantity, we need to use the following formula:

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

1,500= (20,000 - actual quantity)*5

1,500= 100,000 - 5 actual quantity

-98,500/(-5)= actual quantity

19,700= actual quantity

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