Answer:
$3,000 favorable.
Explanation:
The computation of the total direct material cost variance is shown below:
= Material price variance + material quantity variance
where,
The material price variance would be
= Actual Quantity × (Standard Price - Actual Price)
= 47,000 pounds × ($50 - $51)
= 47,000 pounds × $1
= $47,000 unfavorable
And, the material quantity variance would be
= Standard Price × (Standard Quantity - Actual Quantity)
= $50 × (6 pounds × 8,000 units - 47,000 pounds)
= $50 × (48,000 pounds - 47,000 pounds)
= $50 × 1,000 pounds
= $50,000 favorable
So, the total direct material cost variance would be
= $50,000 favorable - $47,000 favorable
= $3,000 favorable
