SweetBerry Ice-creams uses a standard cost system. The following data is available for June:
$\begin{array}{llr}
\text { Actual output } & \$ 6,000 \text { gallons } \
\text { Standard material cost } & \$ 8 \text { gallon } \
\text { Standard quantity allowed per gallon } & \$ 1 \text { gallon } \
\text { Material price variance } & \$ 630 \text { Unfavorable } \
\text { Material usage variance } & \$ 2,400 \text { Unfavorable }
\end{array}$
The actual material cost for June was:

Question

SweetBerry Ice-creams uses a standard cost system. The following data is available for June:
$\begin{array}{llr}
\text { Actual output } & \$ 6,000 \text { gallons } \
\text { Standard material cost } & \$  8 \text { gallon } \
\text { Standard quantity allowed per gallon } & \$  1 \text { gallon } \
\text { Material price variance } & \$ 630 \text { Unfavorable } \
\text { Material usage variance } & \$ 2,400 \text { Unfavorable }
\end{array}$
The actual material cost for June was:

Quizplus · Accepted Answer

The actual material cost is calculated by adding the total standard cost to the unfavorable variances: (6,000 gallons * $8) + $630 + $2,400 = $51,030.

SweetBerry Ice-Creams Uses a Standard Cost System The Actual Material Cost for June Was: A)$48,000

SweetBerry Ice-Creams Uses a Standard Cost System The Actual Material Cost for June Was:
A)$48,000