Scotto Designs has the following standards for the production of scarves: Standard Quantity Standard Price Direct materials 1.2 yards per scarf $4.70 per yard Direct labor 0.15 hours per scarf $11.00 per hour The company used 985 yards of material in order to make 800 scarves in April. The company purchased 1,100 yards at $4.60 per yard. How much is the direct materials quantity variance

The materials quantity variance = 117.5 Unfavorable

Explanation:

Given

Standard Quantity Direct materials 1.2 yards per scarf

Standard Price  $4.70 per yard

Direct labor 0.15 hours per scarf $11.00 per hour

Actual Quantity 985 yards of material 800 scarves

Standard Quantity for 800 scarves= Standard Quantity * no of Scarves= 1.2* 800= 960 yards

Actual Quantity purchased 1,100 yards

Actual Price $4.60 per yard

Required The materials quantity variance

Formula:  The materials quantity variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

We take the actual quantity used in the quantity variance not the quantity purchased.

The materials quantity variance =( 4.7* 985 )- (4.7* 960)

The materials quantity variance = 4629.5-4512

The materials quantity variance = 117.5 Unfavorable

answer; the above statement is (true);