The per unit standards for direct materials are 3 gallons at five dollars per gallon last month 11,000 gallons of direct materials that actually costed $42,000 were used to produce 6000 units of product. What is the quantity variance for last month?

The direct materials quantity variance measures the difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard cost per unit. Here's how to calculate it:

### Step 1: Find the standard quantity allowed
The standard quantity of materials allowed is based on the number of units produced and the per unit standard for direct materials. In this case:
- 6,000 units were produced.
- The standard is 3 gallons per unit.

So, the standard quantity allowed = $ 6,000 \, \text{units} \times 3 \, \text{gallons/unit} = 18,000 \, \text{gallons} $.

### Step 2: Identify the actual quantity used
The actual quantity used was 11,000 gallons.

### Step 3: Calculate the quantity variance
The direct materials quantity variance formula is:

\[
\text{Quantity Variance} = (\text{Actual Quantity Used} - \text{Standard Quantity Allowed}) \times \text{Standard Cost per Unit}
\]

\[
\text{Quantity Variance} = (11,000 \, \text{gallons} - 18,000 \, \text{gallons}) \times 5 \, \text{dollars/gallon}
\]

\[
\text{Quantity Variance} = (-7,000 \, \text{gallons}) \times 5 \, \text{dollars/gallon}
\]

\[
\text{Quantity Variance} = -35,000 \, \text{dollars}
\]

### Conclusion:
The direct materials quantity variance is **$35,000 favorable** because the actual quantity used was less than the standard quantity allowed.

Would you like more details or have any questions?

Here are 5 related questions to expand on this concept:
1. What is the price variance for the direct materials used in this scenario?
2. How would the variance change if more materials had been used than the standard allowed?
3. How can a company use quantity variance to improve operational efficiency?
4. What other variances might impact the overall cost variance for this product?
5. How do you calculate the direct labor quantity variance in a similar situation?

**Tip:** A favorable variance occurs when actual costs or quantities are lower than expected, while an unfavorable variance occurs when they are higher.

The per unit standards for direct materials are 3 gallons at five dollars per gallon. Last month, 11,000 gallons of direct materials that actually cost $42,000 were used to produce 6,000 units of product. What is the quantity variance for last month?

Learn how to calculate the direct materials quantity variance for a company that used 11,000 gallons of materials to produce 6,000 units of product. Understand the difference between actual and standard material usage and apply the variance analysis formula. Suitable for college-level accounting students.

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