Reference no: EM132527041
Question 1: A company provided the following direct materials cost information. Compute the total direct materials cost variance.
Standard costs assigned: Direct materials standard cost (414,000 units @ $5.00 / unit) $2,070,000
Actual costs: Direct Materials costs incurred (412,750 units @ $5.20 / unit) $2,146,300
Option 1: $76,300 Favorable.
Option 2: $82,550 Unfavorable.
Option 3: $76,300 Unfavorable.
Option 4: $82,550 Favorable.
Option 5: $6,250 Favorable.
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