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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.$5,600 unfavorable b.$(5,600) favorable c.$16,850 unfavorable d.$3,200 unfavorable

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Answer:

Total manufacturing cost variance = $5,600 unfavorable

Explanation:

The total manufacturing cost variance is the difference between the actual total manufacturing cost incurred and the standard manufacturing cost for the actual output achieved.

The manufacturing cost is the sum of the direct material cost and direct labour cost and factory production overhead.

Actual total Manufacturing cost = 202,100

Standard manufacturing cost=$196,500

Variance = $202,100- $196,500=$5,600 unfavorable

Total manufacturing cost variance = $5,600 unfavorable

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