Answer:
total materials variance is $1400 Unfavorable
Explanation:
given data
budgeted = $101
actually cost = $100 per yard
company actually made = 4600 units
planned to make = 3800 units
Total yards used for production = 4660
to find out
How much is the total materials variance
solution
we know that company made 4600 so 4600 yards should be use of material but here actually used 4660 yards
so materials quantity variance is = 60 × $100 = $6000 Unfavorable
material more used
and
here materials bought less than standard price
so that we can say, materials price variance is favorable
so 4600 units should used materials costing = 4600 × $101
initial estimates materials costing = $464600
and
Actually 4600 use materials costing = 4600 ×100 = $460000
so
materials price variance = $464600 - $460000 = 4600 Favorable
and
total materials variance = $4600 - $6000 = -1400
so total materials variance is $1400 Unfavorable
