What is the meaning of escape?
2 answers:
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Answer:
Total Material Variance = $52,130 Unfavorable
Explanation:
Total Material Variance = Actual Cost - Standard Cost
Total Material Variance = Direct Material Price Variance + Direct Material Usage Variance.
But here, we will calculate straight, therefore
Standard cost for 5,200 sleeping bags
= 5,200 4
$5.50 = $114,400
Actual Cost = 27,300 $6.10 = $166,530
Total Material Variance = $166,530 - $114,400 = $52,130 Unfavorable
As this is the positive, as also Actual cost is higher than standard therefore, this is unfavorable.