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Remi Bakery provides the following standard and actual costs for direct materials to produce 1,000 bags of cookies: Quantity per bag of cookies Price per
Remi Bakery provides the following standard and actual costs for direct materials to produce 1,000 bags of cookies:
Quantity per bag of cookies | Price per lb. | |
Standard | 2.80 lbs. | $4.50 |
Actual | 2.50 lbs. | $4.70 |
Calculate the direct material cost variance.
-$850 favorable
-$500 favorable
$850 unfavorable
$500 unfavorable
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