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A company uses the following standard costs to produce a single unit of output. Direct materials 8 pounds at $0.80 per pound = $ 6.40
A company uses the following standard costs to produce a single unit of output.
Direct materials 8 pounds at $0.80 per pound = $ 6.40
Direct labor 0.2 hour at $9.00 per hour = $ 1.80
Manufacturing overhead 0.2 hour at $3.80 per hour = $ 0.76
During the latest month, the company purchased and used 76,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $15,747 based on 1,810 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $3,600 and fixed manufacturing overhead incurred was $17,000. Based on this information, the total direct labor cost variance for the month was:
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