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 vanance is a $63,000 favorable b. $59,400 unfavorable c. $63,000 unfavorable d. $59.400 favorable

Direct material quantity variance

= (Standard quantity - Actual quantity) x standard price

= (5.7 x 23500 - 129,000) x $12

= $59,400(F)

The correct answer is B

Explanation:

Direct material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price. Standard quantity is obtained by the product of standard quantity per unit and actual production.

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