Question
Alpha Company developed standard costs for direct material and direct labour. In 2021, Alpha estimated the following standard costs for one of their major products,
Alpha Company developed standard costs for direct material and direct labour. In 2021, Alpha estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.69 pounds $72 per pound
Direct labour 0.29 hours $32.93 per hour
During December, Alpha produced and sold 24952 containers, purchasing and using 14031 pounds of direct materials at an average cost per pound of $67 and 6928 direct manufacturing labour-hours at an average wage of $35.62 per hour.
December's direct material flexible-budget variance is $________. (If the variance is unfavourable, present your answer as a negative (e.g., -100), if it is a favourable variance, present as it is (e.g., 100)). (Round your final answer to the nearest dollar.)
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