Fletcher Company collected the following data regarding production of one of its products. Compute the total direct materials cost variance.
A) $6,000 favorable.
B) $3,570 unfavorable.
C) $2,430 favorable.
D) $6,000 unfavorable.
E) $3,570 favorable.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the total direct materials cost variance. 
A) $6,000 favorable. 
B) $3,570 unfavorable. 
C) $2,430 favorable. 
D) $6,000 unfavorable. 
E) $3,570 favorable.

Quizplus · Accepted Answer

Actual units at actual cost = $483,570
Standard units at standard cost = 40,000 × 6 lbs. × $2 = $480,000
Total direct materials cost variance = $3,570 unfavorable

Fletcher Company Collected the Following Data Regarding Production of One