The following data relate to direct materials costs for February:
Materials cost per yard: standard, $2.00; actual, $2.10
Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards
Units of production: 9,500
Calculate the total direct materials cost variance.
A) $9,262.50 unfavorable
B) $9,262.50 favorable
C) $3,780.00 unfavorable
D) $3,562.50 favorable

Question

Quizplus · Accepted Answer

The total direct materials cost variance is calculated as: (Actual Cost - Standard Cost) = (Actual Price x Actual Quantity) - (Standard Price x Standard Quantity). Here, (2.10 x 4.75 x 9,500) - (2.00 x 4.5 x 9,500) = $95,062.50 - $85,800 = $9,262.50 unfavorable.

The Following Data Relate to Direct Materials Costs for February