NovaTech Industries planned to use 2 pounds of material per unit, budgeted at $50 per pound. However, the material actually cost $48 per pound. The company actually produced 2,400 units, although it had originally planned to make only 2,000 units. The total pounds used for production were 4,900 pounds. What is the total materials variance?

NovaTech Industries planned to use 2 pounds of material per unit, budgeted at $50 per pound. However, the material actually cost $48 per pound. The company actually produced 2,400 units, although it had originally planned to make only 2,000 units. The total pounds used for production were 4,900 pounds. What is the total materials variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

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