A company's product requires 3 ponds of direct materials at $21.60 per pund and 2 direct labor hours at $48.60 per hour. The company uses an overhead rate of $41.80 per direct labor hour to assign overhead. This period's actual cost to manufacture 125 units is $32,200. Calculate the total cost variance and indicate whether it is favorable or unfavorable.

Answer rating: 100% (QA)

To calculate the total cost variance we need to compare the actual cost to manu... View the full answer