Question

Dylan has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2000 units, Dylan used 3100 pounds of materials at a total cost of $18,135. Dylan's total variance is

Answer 1

Dylan's total variance is $135.

Step-by-step explanation:

To find Dylan's total variance, we need to determine the difference between the actual cost and the standard cost. The standard cost is calculated by multiplying the standard quantity per unit (1.5 pounds) by the standard price per pound ($6). So the standard cost per unit is $9 (1.5 pounds * $6).

Now we can calculate the standard cost for producing 2000 units:

Total standard cost = Standard cost per unit * Number of units = $9 * 2000 = $18,000.

To find the total variance, subtract the actual cost from the standard cost:

Total variance = Actual cost - Standard cost = $18,135 - $18,000 = $135.