Cabot Company collected the following data regarding production of one of its products. Compute the direct materials cost variance.
A) $6,000 favorable.
B) $3,570 unfavorable.
C) $2,430 favorable.
D) $6,000 unfavorable.
E) $3,570 favorable.

Question

Quizplus · Accepted Answer

To calculate the direct materials cost variance, we need to determine the difference between the actual quantity of materials used and the standard quantity of materials that should have been used, multiplied by the difference between the actual cost per unit of materials and the standard cost per unit of materials. 
In this case, we are not given the actual quantity of materials used, so we cannot calculate the variance. Therefore, we cannot select any of the answer choices provided.

Cabot Company Collected the Following Data Regarding Production of One