The standard materials cost to produce 1 unit of Product R I

The standard materials cost to produce 1 unit of Product R Is 7 pounds of materlal at a standard price of $49 per pound. In manufacturing 6,000 units, 41,000 pounds of material were used at a cost of $50 per pound. What is the total direct materlals cost varlance? O $8,000 favorable. O $8,000 unfavorable O $50,000 unfavorable O $42,000 unfavorable. O $50,000 favorable

Solution

Total direct material cost variance = Actual Cost - Standard Cost (AQ x AP) -(SQ x SP) (41000 x $50) - (42000 x $49) 2050000 - 2058000 8000 favorble Option A