Chapter 8, Problem 2MCQ

To determine

Direct Materials:

Direct materials mean those materials which can be directly identified with the manufacturing of a particular product. Cost of direct materials is a manufacturing cost. Direct materials are used in the process of making finished products.

Direct Material Standard Cost:

Direct material standard cost is calculated by multiplying direct material units into direct material cost per unit.

Direct Material Cost Variance:

Direct material cost variance is that disparity between actual cost of direct materials and budgeted cost of direct materials.

Total Actual Cost of Direct Materials Used:

Total actual cost of direct materials used means the total of actual cost incurred on direct materials.

To identify: Total actual cost of direct materials used.