ABC Company
ABC Company reports the following information for the most recent period when 2,750 units were produced.

Refer to ABC Company.Calculate the total direct materials variance.

Question

ABC Company
ABC Company reports the following information for the most recent period when 2,750 units were produced.

Refer to ABC Company.Calculate the total direct materials variance.

Quizplus · Accepted Answer

The Total Direct Materials Variance can be calculated as the difference between the actual cost incurred and the standard cost allowed for the materials used. The actual cost incurred for the production of 2,750 units is $49,275 ($17,925 + $31,350). The standard cost allowed for the materials used is $42,125 ($15.25 x 2,750 units). Therefore, the Total Direct Materials Variance is $7,150 U ($49,275 - $42,125).

ABC Company ABC Company Reports the Following Information for the Most Recent