chapter 22 q 4

A company reports the following for one of its products. Direct materials standard (4 pounds @ 35 per pound) $ 20 per unit Actual units produced 60,000 units Actual cost of direct materials used $ 1,240,000 Compute the total direct materiais variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Direct materials variance