A company's output for the month has a standard direct material cost of $120,000. The direct materials price variance is $2,000 favorable, and the quantity variance is $4,000 unfavorable. What is the actual total direct materials cost?

A company's output for the month has a standard direct material cost of $120,000. The direct materials price variance is $2,000 favorable, and the quantity variance is $4,000 unfavorable. What is the actual total direct materials cost?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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What is the actual total direct materials cost? Accounting Question

A company's output for the month has a standard direct
material cost of $120,000. The direct materials price
variance is $2,000 favorable, and the quantity variance is
$4,000 unfavorable.
What is the actual total direct materials cost?

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