Answer:
e. $2,950 unfavorable
Explanation:
Since the units are the same, then we will work with the costs and pounds.
Standard
4,000 pounds × $5 per pounds
(4,000 × $5) = $20,000
Actual
4,500 pounds x costs per pound $5.10
(4,500 × $5.10) = $22,950
Therefore,
Standard - Actual
$20,000 - $22,950 = $2,950
Therefore, the direct materials quantity variance is $2,950 unfavorable since actual cost of materials expended is more that the standard cost of materials.
