A company provided the following direct materials cost information. Compute the cost variance.
A) $2,500 Favorable.
B) $78,250 Favorable.
C) $78,250 Unfavorable.
D) $80,750 Favorable.
E) $80,750 Unfavorable.

Question

Quizplus · Accepted Answer

EThe cost variance is calculated as the difference between the actual cost and the standard cost. Without specific numbers provided for the actual cost, standard cost, or the quantities involved, it's impossible to calculate or determine the correct variance value or whether it is favorable or unfavorable. However, since the question lacks the necessary data to perform a calculation, any selection of a specific variance value would be arbitrary. The correct approach to a question like this typically involves analyzing provided data on actual versus standard costs, which is not available in this case.

A Company Provided the Following Direct Materials Cost Information