With a direct materials price variance of $40,000 F and direct materials efficiency, direct manufacturing labor price, and direct labor efficiency variances of $60,000 U, 20,000 U, and 15,000 U, the write-off to cost of goods sold if these are deemed immaterial would be a debit of $55,000.

Question

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The write-off to cost of goods sold would be the net of all variances, which is ($40,000) + ($60,000) + ($20,000) + ($15,000) = $15,000 U. However, if these variances are deemed immaterial, then they can be written off to cost of goods sold as a lump sum of $55,000. The debit to cost of goods sold is an increase in expenses, hence the answer is A.

With a Direct Materials Price Variance of $40,000 F and Direct