ilicon Inc. has provided the following information for the year ended December 31, Year 1.
Master Budget Actual Costs
5,000 units 4,500 units
Direct materials $ 35,000 $ 32,500 Direct labor 15,000 12,500 Variable manufacturing overhead 8,000 7,800 Fixed manufacturing overhead 16,000 17,500 Total manufacturing cost $ 74,000 $ 70,300 Knowledge Check 01
What is the direct materials spending variance?
a) $1,000 favorable
b) $1,000 unfavorable
c) $3,500 favorable
d) $3,500 unfavorable
