Question

Georgia, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is:

Direct materials standard (3 lbs @ $2/lb)	$6	per finished unit
Total direct materials cost variance—unfavorable	$14,250
Actual direct materials used	100,000	lbs.
Actual finished units produced	25,000	units

• $135,750.

• $150,000.

• $100,000.

• $164,250.

• $182,000.

Answer 1

Correct answer----------$164,250

Working

Standard cost	$   150,000.00
Add: Direct material Unfavorable variance	$     14,250.00
Actual direct labor cost	$   164,250.00

.

Standard DATA for		25000	Units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct Material	( 3 Pounds x 25000 Units)=75000 Pounds	$              2.00	$          150,000.00