Georgia, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is: $$\begin{array} { l l c }
\text { Direct materials standard (4 lbs. @ \$1/16.) } & \$ 4 \text { per fiinshed unit } \
\text { Total direct materials cost variarne — unfavorable } & \$ 13,750 \
\text { Actual direct materials used } & 150,000 \text { lbs. } \
\text { Actual finished units produced } & 30,000 \text { units }
\end{array}$$

Question

Georgia, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is: $$\begin{array} { l l c } 
\text { Direct materials standard (4 lbs. @ \$1/16.) } & \$  4 \text { per fiinshed unit } \
\text { Total direct materials cost variarne — unfavorable } & \$ 13,750 \
\text { Actual direct materials used } & 150,000 \text { lbs. } \
\text { Actual finished units produced } & 30,000 \text { units }
\end{array}$$

Quizplus · Accepted Answer

The actual cost of direct materials used is the sum of the standard cost and the unfavorable variance. The standard cost is $4 per finished unit, and the unfavorable variance is $13,750. Therefore, the actual cost of direct materials used is $4 + $13,750 = $133,750.

Georgia, Inc A) $133,750