To calculate the total direct materials variance, we need to first calculate the standard cost, actual cost, and then find the difference between the two.

1. Calculate the Standard Cost:
The standard cost is the amount that the company expects to pay for the materials. It is calculated by multiplying the standard quantity by the standard price.
In this case, the standard cost for one unit is 5 pounds * $48/pound = $240.
So, for 8000 units, the standard cost would be 8000 units * $240/unit = $1,920,000.

2. Calculate the Actual Cost:
The actual cost is the amount that the company actually paid for the materials. It is calculated by multiplying the actual quantity by the actual price.
In this case, the actual cost is 39,000 pounds * $49/pound = $1,911,000.

3. Calculate the Total Direct Materials Variance:
The total direct materials variance is the difference between the standard cost and the actual cost.
So, the total direct materials variance would be $1,920,000 - $1,911,000 = $9,000.

Therefore, the total direct materials variance is $9,000. This is a favorable variance because the actual cost is less than the standard cost.

Question

To calculate the total direct materials variance, we need to first calculate the standard cost, actual cost, and then find the difference between the two.

1. Calculate the Standard Cost:
   The standard cost is the amount that the company expects to pay for the materials. It is calculated by multiplying the standard quantity by the standard price. 
   In this case, the standard cost for one unit is 5 pounds * $48/pound = $240. 
   So, for 8000 units, the standard cost would be 8000 units * $240/unit = $1,920,000.

2. Calculate the Actual Cost:
   The actual cost is the amount that the company actually paid for the materials. It is calculated by multiplying the actual quantity by the actual price. 
   In this case, the actual cost is 39,000 pounds * $49/pound = $1,911,000.

3. Calculate the Total Direct Materials Variance:
   The total direct materials variance is the difference between the standard cost and the actual cost. 
   So, the total direct materials variance would be $1,920,000 - $1,911,000 = $9,000.

Therefore, the total direct materials variance is $9,000. This is a favorable variance because the actual cost is less than the standard cost.

Knowee AI · Accepted Answer

To calculate the total direct materials variance, we need to first calculate the standard cost, actual cost, and then find the difference between the two.

1. Calculate the Standard Cost:
   The standard cost is the amount that the company expects to pay for the materials. It is calculated by multiplying the standard quantity by the standard price. 
   In this case, the standard cost for one unit is 5 pounds * $48/pound = $240. 
   So, for 8000 units, the standard cost would be 8000 units * $240/unit = $1,920,000.

2. Calculate the Actual Cost:
   The actual cost is the amount that the company actually paid for the materials. It is calculated by multiplying the actual quantity by the actual price. 
   In this case, the actual cost is 39,000 pounds * $49/pound = $1,911,000.

3. Calculate the Total Direct Materials Variance:
   The total direct materials variance is the difference between the standard cost and the actual cost. 
   So, the total direct materials variance would be $1,920,000 - $1,911,000 = $9,000.

Therefore, the total direct materials variance is $9,000. This is a favorable variance because the actual cost is less than the standard cost.

The standard materials cost to produce 1 unit of Product R is 5 pounds of material at a standard price of $48 per pound. In manufacturing 8,000 units, 39,000 pounds of material were used at a cost of $49 per pound. What is the total direct materials variance?

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