# Quiz 31: Costing – Direct Materials Variance

Test your knowledge of double entry bookkeeping with our online direct materials variance quiz.

## Not Ready for the Direct Materials Variance Quiz?

If you need a refresher course on this topic update your knowledge using our tutorials about the direct materials quantity variance and the direct materials price variance, two of the main variances used in standard costing.

## Start the Direct Materials Variance Quiz

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1. What is the formula for the direct materials price variance?
2. What is the formula for the direct materials quantity variance?
3. A manufacture produces items using plastic sheets, given the following information, what is the direct materials quantity variance?

Actual items produced 500
Standard quantity of sheets per item 2.00
Standard price per sheet 4.00
Actual quantity of sheets used 1,200

4. A manufacture produces items using plastic sheets, given the following information, what is the direct materials quantity variance?

Actual items produced 600
Standard quantity of sheets per item 3.00
Standard price per sheet 2.00
Actual quantity of sheets used 1,700

5. A manufacture produces items using plastic sheets, given the following information, what is the direct materials quantity variance?

Actual items produced 250
Standard quantity of sheets per item 50.00
Standard price per sheet 4.00
Actual quantity of sheets used 11,000

6. A favorable direct materials quantity variance is posted to which side of the direct materials quantity variance account?
7. An unfavorable direct materials price variance is posted to which side of the direct materials price variance account?
8. A manufacture produces items using plastic sheets, given the following information, what is the direct materials price variance?

Actual quantity purchased 2,000
Standard price per sheet 2.00
Actual price per sheet 3.80

9. A significant unfavorable (debit) balance of 8,000 is shown on the direct materials quantity variance account. At the period end, 20% of the material is in work in process, and 80% has been transferred to finished goods.
When allocating and clearing this balance what is the entry to the finished goods inventory account?
10. An insignificant favorable (credit) balance of 200 is shown on the direct materials price variance account, which account is the balance cleared to at the period end?

## Try Another Double Entry Bookkeeping Quiz

The direct materials variance quiz is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below.