Select the correct statement from the following, assuming camacho company had a favorable direct materials price variance of $2,300 and an unfavorable direct materials usage variance of $1,600. multiple choice the total direct materials variance is $3,900 unfavorable. the total direct materials variance is $700 favorable. the total direct materials variance is $3,900 favorable. the total direct materials variance is $700 unfavorable.

The total direct materials variance is $700 favorable.

Explanation:

Total Direct Material Variance = Material Quantity Variance + Material Price Variance

Material Quantity Variance = $1,600 Unfavorable that means it is negative value

Material Price Variance = $2,300 Favorable that means it has positive value

Now joining both we get total material variance = - $1,600 + 2,300

= $700

Since value is positive it is favorable

Therefore, Total Material Variance = $700 Favorable

answer; exemplars;