Candy Stores Inc.gives you the following information: The standard material cost is $7 per pound for a 15 pound bag of chocolate.The following is the actual cost and usage data:

-Using the above information provided for Candy Stores,compute the direct materials variance for Candy Stores.
A)$186,000 (
B)$144,000 (
C)$186,000 (
D)$42,000 (

Question

Candy Stores Inc.gives you the following information: The standard material cost is $7 per pound for a 15 pound bag of chocolate.The following is the actual cost and usage data:
 
-Using the above information provided for Candy Stores,compute the direct materials variance for Candy Stores.
A)$186,000 (
B)$144,000 (
C)$186,000 (
D)$42,000 (

Quizplus · Accepted Answer

The direct materials variance is the difference between the actual cost of direct materials used and the standard cost of direct materials that should have been used. In this case, the actual cost of direct materials used is $1,260,000, and the standard cost of direct materials that should have been used is $1,116,000. Therefore, the direct materials variance is $1,260,000 - $1,116,000 = $144,000 (F).