Acme Manufacturing uses standard costing. Using the following data, calculate the Material Cost Variance.

Std Materials 5 sheets at $5.90 29.5

Std Direct Labor 2 hrs at $10 20

Std Mfg Ovrhd 2 direct labor hrs at $5 10

Total Standard Cost per unit 60

Actual Material Price 5 sheets at $6.20 31

Actual Sheets Used 60000

This problem is a variation of the problem on page 204 chapter 24 Remember that when analyzing variances a negative result can be favorable in some cases and unfavorable in others and the same goes for positive results. You have to use some common sense.