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Question
Cabot Company collected the following data regarding production of one of its products. Compute the direct materials cost variance.
| Direct materials standard (6 lbs. @ $2/lb.) | $12 per finished unit |
| Actual direct materials used | 243,000 lbs. |
| Actual finished units produced | 40,000 units |
| Actual cost of direct materials used | $483,570 |
A. $6,000 favorable.
B. $3,570 unfavorable.
C. $2,430 favorable.
D. $6,000 unfavorable.
E. $3,570 favorable.
Answer
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Related questions
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