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ValentinkaMS [17]
3 years ago
9

Company collected the following data regarding production of one of its products. Compute the total direct materials cost varian

ce.
Direct materials standard (2 lbs. @ $6/lb.) $ 12
per finished unit Actual direct materials used 48,000 lbs.
Actual finished units produced 22,000 units
Actual cost of direct materials used $ 267,790
Business
1 answer:
Xelga [282]3 years ago
6 0

Answer:

The total direct materials cost variance is $3,790 favorable

Explanation:

The computation of the total direct materials cost variance is shown below:

Total direct materials cost variance = Actual cost - standard cost

where,

Actual cost is $267,790

And, the standard cost = Actual finished units produced × Direct materials standard

= 22,000 × $12

= $264,000

Now put these values to the above formula  

So, the value would equal to

= $267,790 - $264,000

= $3,790 favorable

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