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23 Fletcher Company collected the following data regarding production of one of its products. Compute the total direct materials variance. Direct materials standard (3 pounds

23

Fletcher Company collected the following data regarding production of one of its products. Compute the total direct materials variance.

Direct materials standard (3 pounds @ $3/pound) $ 9 per finished unit
Actual direct materials used 78,000 pounds
Actual finished units produced 25,000 units
Actual cost of direct materials used $ 227,380

Multiple Choice

  • $9,000 favorable.

  • $2,380 unfavorable.

  • $6,620 favorable.

  • $9,000 unfavorable.

  • $2,380 favorable.

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