Five Rings, Inc, has collected the following data on one of its products:
| Direct materials standard (4 lbs.@ $ 1.00/b.) | $4.00per finished unit |
| Total direct materials cost variance— unfavorable | $11,050 |
| Actual direct materials used | 157,500 lbs |
| Actual finished units produced | 31,500 units |
| The actual cost of the direct materials used is: |
| $126,000 | |
| $137,050 | |
| $114,950 | |
| $168,550 | |
| $157,500 |
Best answer
(Actual direct materials used*$1/lb) +Total direct materials
cost variance= 157,500 *$1 + $11,050 = 168,550
