Question

Given the following information for Albright Company, what was the total manufacturing cost variance? Manufacturing Costs...

Given the following information for Albright Company, what was the total manufacturing cost variance?

Manufacturing Costs Actual Costs Standard Cost at
Actual Volume

Budgeted Cost
Direct materials $ 80,300 $ 76,000 $ 71,250
Direct labor 77,000 72,500 68,400
Factory overhead 44,800 48,000 45,600
Total $202,100 $196,500 $185,250

a.$3,200 unfavorable

b.$5,600 unfavorable

c.$16,850 unfavorable

d.$(5,600) favorable

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Answer #1

Total manufacturing cost variance = Standard Cost at Actual Volume - Actual costs

= 196,500-202,100

= $5,600 unfavorable

Correct option is b.

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