-Calculate the Total Direct Materials Cost Variance

question 143

Multiple Choice

-Calculate the total direct materials cost variance.

• A) $9,262.50 unfavorable
• B) $9,262.50 favorable
• C) $3,780.00 unfavorable
• D) $3,562.50 favorable

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Definitions:

Raw Materials

Basic materials that are used in the production process of manufacturing goods, often transformed into components or finished products.

Manufacturing Costs

Expenses directly related to the production of goods, including materials, labor, and overhead.

Work-in-Process Inventory

Goods in production but not yet completed; part of a company's inventory.

Direct Labor Costs

The wages or salaries paid to employees directly involved in the production of goods or services.