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aksik [14]
2 years ago
6

During the latest month, the company purchased and used 47,000 pounds of direct materials at a price of $1.20 per pound to produ

ce 10,000 units of output. Direct labor costs for the month totaled $28,425 based on 3,790 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $14,800 and fixed manufacturing overhead incurred was $12,000.
Based on this information, the total direct materials cost variance for the month was _____.
Business
1 answer:
Nataliya [291]2 years ago
5 0

Answer:

$1400 U

Explanation:

Total direct materials cost variance = (47,000 actual pounds × $1.20 actual cost per pound) − (50,000 standard pounds × $1.10 per pound) = $1,400 unfavorable

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