Answer:
$5,400= indirect material
Explanation:
Giving the following information:
Standard= $0.75 per unit of output.
Indirect material spending variance= $600 favorable
8,000 units of output were produced last month.
To determine the indirect material costs incurred, we need to use the following formula:
Indirect material price variance= (standard price - actual price)*actual quantity
600= (0.75 - actual price)*8,000
600= 6,000 - actual price
5,400= actual price (in total)
To prove:
Indirect material price variance= (0.75*8,000 - 5,400)
Indirect material price variance= $600 favorable
