Sanchez Company's output for the current period was assigned a $200,000 standard direct materials cost.The direct materials variances included a $5,000 favorable price variance and a $3,000 unfavorable quantity variance.What is the actual total direct materials cost for the current period?
A)$208,000.
B)$198,000.
C)$202,000.
D)$192,000.
E)$205,000.

Question

Quizplus · Accepted Answer

The actual total direct materials cost is calculated by adjusting the standard cost with the variances: $200,000 (standard cost) - $5,000 (favorable price variance) + $3,000 (unfavorable quantity variance) = $198,000.

Sanchez Company's Output for the Current Period Was Assigned a $200,000