Asked by Brooke Thompson on May 21, 2024
Verified
The total direct materials cost variance is
A) $9,262.50 unfavorable
B) $9,262.50 favorable
C) $3,780.00 unfavorable
D) $3,562.50 favorable
Direct Materials Cost Variance
The difference between the budgeted cost of materials and the actual cost used in production.
Materials Cost
The expense incurred for the raw materials that are used in the production of goods or services.
Yards Per Unit
A measurement used to indicate the amount of yardage (length in yards) of material required or utilized per unit of production.
- Recognize and compute variances in direct materials, encompassing both price and quantity discrepancies.
- Utilize conventional cost systems for the analysis and effective management of production expenses.
Verified Answer
Learning Objectives
- Recognize and compute variances in direct materials, encompassing both price and quantity discrepancies.
- Utilize conventional cost systems for the analysis and effective management of production expenses.
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