Cabot Company collected the following data regarding production of one of its products. Compute the...
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Accounting
Cabot Company collected the following data regarding production of one of its products. Compute the direct materials cost variance. Direct material; standard (6lbs @ $2/lb.): $12 per finished unit Actual direct materials used: 243,000 lbs. Actual finished units produced: 40,000 units Actual cost of direct materials used: $483,570
a
$6,000 favorable
b
$3,570 unfavorable
c
$2,430 favorable
d
$6,000 unfavorable
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