Based on the following,what is the total direct materials variance?

Question

Quizplus · Accepted Answer

The total direct materials variance is equal to the sum of the direct materials price variance and the direct materials quantity variance. From the given information, we can calculate:

Direct materials price variance = (Actual price - Standard price) x Actual quantity
= ($6.50 - $7.00) x 1,500
= $750 F (favorable because the actual price is lower than the standard price)

Direct materials quantity variance = (Actual quantity - Standard quantity) x Standard price
= (1,600 - 1,500) x $7.00
= $700 U (unfavorable because more materials were used than planned)

Total direct materials variance = Direct materials price variance + Direct materials quantity variance
= $750 F + ($700 U)
= $50 F (favorable because the favorable price variance partially offset the unfavorable quantity variance)

Therefore, the correct answer is C) $150 F, which is not an option given.

Based on the Following,what Is the Total Direct Materials Variance