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kherson [118]
3 years ago
11

Select the correct statement from the following,assuming Carmichael Company had a favorable direct materials price variance of $

3,000 and an unfavorable direct materials usage variance of $2,000.
A) The total direct materials variance is $1,000 unfavorable.
B) The total direct materials variance is $5,000 favorable.
C) The total direct materials variance is $5,000 unfavorable.
D) The total direct materials variance is $1,000 favorable.
Business
1 answer:
Murljashka [212]3 years ago
4 0

Answer:

Total direct material variance= $1,000 favorable

Explanation:

Giving the following information:

Company had a favorable direct materials price variance of $3,000 and an unfavorable direct materials usage variance of $2,000.

<u>To calculate the total direct material variance, we need to use the following formula:</u>

<u></u>

Total direct material variance= price variance +/- quantity variance

Total direct material variance= 3,000 - 2,000

Total direct material variance= $1,000 favorable

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