Acompany had the following direct materials cost information:

standard costs assigned: direct materials standard cost (405,000 units @ $2/unit) $810,000

actual costs: direct materials costs incurred (403,750 units @ $2.20/unit) $888,250

what was the cost variance?

a) $2,500 favorable.
b) $78,250 favorable
c) $78.250 unfavorable
d) $80,750 favorable.
e) $80,750 unfavorable.

Option c)  $78,250 unfavorable

Step-by-step explanation:

The given information in the question :

Standard cost = $810,000

Actual cost = $888,250

Cost variance can be calculated as using the following formula :

Cost variance = standard cost - actual cost

                       = 810,000 - 888,250

                       = ($78,250) unfavorable

Favorable indicates how much under budget the project.

unfavorable indicates how much over budget the project.

Therefore, Option c) 78,250 unfavorable is the answer.

idc

step-by-step explanation:

idk

i am not sure :

step-by-step explanation: