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A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor Manufacturing overhead 6 pounds at $1.00 per
A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor Manufacturing overhead 6 pounds at $1.00 per pound = 0.4 hour at $8.00 per hour 0.4 hour at $4.60 per hour $ 6.00 3.20 1.84 During the latest month, the company purchased and used 57,000 pounds of direct materials at a price of $1.30 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $28,500 based on 3,750 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,400 and fixed manufacturing overhead incurred was $16,000. Based on this information, the total direct labor variance for the month was: Multiple Choice $3,500 favorable $1,500 favorable $3,500 favorable $1,500 favorable O $2,000 unfavorable O $2,000 favorable O $1,500 unfavorable
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