A company provided the following direct materials cost information. Compute the total direct materials cost variance.
A) $2,500 Favorable.
B) $78,250 Favorable.
C) $78,250 Unfavorable.
D) $80,750 Favorable.
E) $80,750 Unfavorable.

Question

A company provided the following direct materials cost information. Compute the total direct materials cost variance. 
A) $2,500 Favorable. 
B) $78,250 Favorable. 
C) $78,250 Unfavorable. 
D) $80,750 Favorable. 
E) $80,750 Unfavorable.

Quizplus · Accepted Answer

Actual cost $888,250 − Standard cost $810,000 = $78,250 U

A Company Provided the Following Direct Materials Cost Information