The materials quantity variance = 117.5 It is unfavorable variance
It is calculated as follows:
Standard Quantity Direct materials = 1.2 yards per scarf
Standard Price = $4.70 per yard
Direct labor =0.15 hours per scarf and $11.00 per hour
Actual Quantity= 985 yards of material 800 scarves order is there.
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
The materials quantity variance=
(Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)
Now we take the actual quantity used in the quantity variance not the quantity purchased.
Therefore the materials quantity variance =( 4.7* 985 )- (4.7* 960)
= 4629.5-4512
= 117.5
It is also unfavorable
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