Sanchez Company's output for the current period was assigned a $200,000 standard direct materials cost. The direct materials variances included a $5,000 favorable price variance and a $3,000 unfavourable quantity variance. What is the actual total direct materials cost for the current period? a. $208,000. b. $205,000. c. $192,000. d. $202,000. e. $198,000.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 4CE: Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual...
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Sanchez Company's output for the current period was assigned a $200,000
standard direct materials cost. The direct materials variances included a
$5,000 favorable price variance and a $3,000 unfavourable quantity
variance. What is the actual total direct materials cost for the current
period?
a. $208,000.
b. $205,000.
c. $192,000.
d. $202,000.
e. $198,000.
Transcribed Image Text:Sanchez Company's output for the current period was assigned a $200,000 standard direct materials cost. The direct materials variances included a $5,000 favorable price variance and a $3,000 unfavourable quantity variance. What is the actual total direct materials cost for the current period? a. $208,000. b. $205,000. c. $192,000. d. $202,000. e. $198,000.
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