Question

For the current period, Kayenta Company’s manufacturing operations yield a \(4,000 unfavorable direct materials price variance. The actual price per pound of material is \)78; the standard price is $77.50 per pound. How many pounds of material were used in the current period?

Short answer

A total of 8,000 pounds of material were used in the current period.

Step-by-step solution

Meaning of Manufacturing

Manufacturing refers to the processing and converting of raw materials into finished goods. In the manufacturing process, labor and machinery convert materials into goods.

Computation of materials used in the current period

$\begin{array}{rcl}& & \mathbf{\text{Directmaterialquantityvariance=}}\mathbf{\left(}\mathbf{\text{Actualprice-Standardprice}}\mathbf{\right)}\mathbf{\times }\mathbf{\text{Actualquantity}}\\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{\$}\mathbf{4}\mathbf{,}\mathbf{000}& \mathbf{=}& \mathbf{}\mathbf{(}\mathbf{\$}\mathbf{78}\mathbf{-}\mathbf{\$}\mathbf{77}\mathbf{.}\mathbf{50}\mathbf{)}\mathbf{\times }\mathbf{\text{ActualQuantity}}\\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{\text{Actualquantity}}& \mathbf{=}& \frac{\mathbf{\$}\mathbf{4}\mathbf{,}\mathbf{000}}{\mathbf{\$}\mathbf{0}\mathbf{.}\mathbf{50}}\\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}& \mathbf{=}& \mathbf{8}\mathbf{,}\mathbf{000}\mathbf{}\mathbf{\text{pounds}}\end{array}$