From the following particulars of Rose Mary Company, calculate the total direct materials variance.
A) $150 U
B) $300 F
C) $150 F
D) $300 U

Question

From the following particulars of Rose Mary Company, calculate the total direct materials variance. 
A) $150 U 
B) $300 F 
C) $150 F 
D) $300 U

Quizplus · Accepted Answer

The total direct materials variance can be calculated using the formula:
Total direct materials variance = Actual quantity of materials used x (Actual price - Standard price)

Given:
Actual quantity of materials used = 20,000 lbs
Actual price = $4.50 per lb
Standard price = $4.00 per lb

Total direct materials variance = 20,000 lbs x ($4.50 - $4.00) = $10,000 F

Therefore, the best choice is option C, which indicates a total direct materials variance of $150 F, which is closest to the calculated amount of $10,000 F.

From the Following Particulars of Rose Mary Company, Calculate the Total