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Free_Kalibri [48]
2 years ago
8

Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Dillon used 3,100 pounds o

f materials at a total cost of $18,135.
Dillon's total variance is:


$450 F.


$600 U.


$465 U.


$135 U.
Business
1 answer:
svp [43]2 years ago
3 0

Answer:

$135 Unfavorable

Explanation:

The computation of total variance is shown below:-

For computing the total variance first we need to find out the actual price which is below:-

Actual price = Total cost ÷ Actual quantity

= $18,135 ÷ 3,100

= $5.85 pound

Now,

Total variance = Standard quantity × Standard price - Actual quantity × Actual price

= (($2,000 × 1.5) × $6) - 3,100 × $5.85

= 3,000 × $6 - 3,100 × $5.85

= $18,000 - $18135

= $135 Unfavorable.

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Answer:

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