ABC, Inc., manufactures a single product. The standard cost sheet for this product reflects the following:

Direct material	6 per unit
Standard material cost	$0.85 per ounce of material

In the last quarter, the company manufactured 3794 units of this product. Below is information related to the preparation of these 3794 units:

Total material used in manufacturing	25040.4 ounces
Actual material cost	$0.68 per hour

REQUIRED: Determine the TOTAL material variance (how much higher or lower is the actual total cost compared to the standard total cost). If the variance is favorable, the answer should be positive (e.g., 100), and if it is unfavorable, the answer should be negative (e.g., -100). YOU CAN USE TWO DECIMALS IN YOUR ANSWER.

Answer rating: 100% (QA)

To determine the total material variance we need to calculate the difference between the standard to... View the full answer