The standard materials cost to produce one unit of Product M is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the total direct material cost variance?
A) $48,000 unfavorable
B) $51,000 favorable
C) $51,000 unfavorable
D) $ 3,000 favorable
E) $ 3,000 unfavorable

Question

Quizplus · Accepted Answer

Price variance = $1 x 47,000 pounds = $47,000 unfavorable
Quantity variance = 1,000 pounds x $50 = $50,000 favorable
Total material cost variance = $3,000 favorable

The Standard Materials Cost to Produce One Unit of Product