Direct Materials Quantity Variance Calculation: Lucy Corporation Case Study

Lucy Corporation purchased and used 129,000 board feet of lumber in production, at a total cost of $1,548,000. Original production had been budgeted for 22,000 units with a standard material quantity of 5.7 board feet per unit and a standard price of $12 per board foot. Actual production was 23,500 units.

The direct materials quantity variance is a. $63,000 unfavorable b. $59,400 unfavorable c. $59,400 favorable d. $63,000 favorable

Answer: b. $59,400 unfavorable