Chapter 21, Problem 7QS

To determine

Direct Materials Cost Variance

The direct material variance is the difference between the budgeted value of direct material required for the production and the actual value of the direct material being incurred during the production process.
A direct material variance is said to be favorable when the actual costs incurred for the direct material in the production process is lesser than the projected cost.
An unfavorable direct material occurs when the costs incurred for direct material is comparatively more than the budgeted cost.

The total direct material cost variance and classify as favorable or unfavorable.