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Atkins, Inc. produces a product requiring 8 pounds of material at $1.50 per pound. Atkins produced 10,000 units of this product during 2019 resulting in a $30,000 unfavorable materials quantity variance. How many pounds of direct material did Atkins use during 2019?

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Answer:

100,000 pounds

Step-by-step explanation:

The expected value (E) spent on direct materials used by Atkins,Inc for 2019 is:

[tex]E=\$1.50*8*10,000\\E= \$120,000[/tex]

Since there was an unfavorable $30,000 variance in materials quantity, the actual value spent (Av) on direct materials is:

[tex]A_{v}= \$120,000 +\$30,000\\A_{v}= \$150,000[/tex]

The amount of direct material (M), in pounds, used during 2019 is:

[tex]M=\frac{\$150,000}{\$1.50} \\M=100,000 \ pounds[/tex]

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