Answer:
total direct materials cost variance is $6,000 Favourable
Explanation:
first we get here Standard cost to manufacture
Standard cost to manufacture 6,000 units is = 7 × $47 × 6,000
Standard cost = $1,974,000
and
now we get here Actual cost to manufacturing
Actual cost to manufacturing 6,000 units is = 41,000 × $48
Actual cost = $1,968,000
and
now we get here Direct material cost variance that is express as
Direct material cost variance = Standard cost - Actual cost ..........1
put here value
Direct material cost variance = $1,974,000 - $1,968,000
Direct material cost variance = $6,000 Favourable
