The standard materials cost to produce 1 unit of Product Z is 6 pounds of material at a standard price of $45 per pound. In manufacturing 4,000 units, 25,000 pounds of material were used at a cost of $46 per pound. What is the total direct materials cost variance?

The standard materials cost to produce 1 unit of Product Z is 6 pounds of material at a standard price of $45 per pound. In manufacturing 4,000 units, 25,000 pounds of material were used at a cost of $46 per pound. What is the total direct materials cost variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 10PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...

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Question

Can you help me solve this financial accounting problem with the correct methodology?

The standard materials cost to produce 1 unit of Product Z
is 6 pounds of material at a standard price of $45 per
pound. In manufacturing 4,000 units, 25,000 pounds of
material were used at a cost of $46 per pound.
What is the total direct materials cost variance?

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