Five Rings, Inc, has collected the following data on one of its products:
Direct materials = 36,000($2.25) + $11,500 (cost variance) = $92,500
| Direct materials standard (3 lbs.@ $ .75/b.) | $2.25per finished unit |
| Total direct materials cost variance— unfavorable | $11,500 |
| Actual direct materials used | 180,000 lbs |
| Actual finished units produced | 36,000 units |
| The actual cost of the direct materials used is: |
| $144,000 | |
 | $92,500 |
| $191,500 | |
| $180,000 | |
| $132,500 |
