Calculate the price variance for materials for the month.
The standard cost card for a unit of product at the Cleaner Corp. shows the following standard cost information:
Materials: 2 gallons at $11 per gallon..........................$ 22
Labor: 5 hour at $16 per hour.....................................80
Overhead: 80% of direct labor....................................64
Total................................................................$166
During the month of October 2016, Job O-3 was completed. It was the only job worked on during October. Six thousand units were produced from the job. The actual costs were as shown below:
Materials: 12,200 gallons at $11.10 per gallon..........................$ 135,420
Labor: 30,100 hours at $16.10 per hour....................................484,610
Actual overhead................................................................387,688
Total..........................................................................$1,007,718