Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company uses the following standard costs to produce a single unit of output. Direct materials 7 pounds at $0.60 per pound = $ 4.20
A company uses the following standard costs to produce a single unit of output.
Direct materials | 7 pounds at $0.60 per pound | = | $ | 4.20 | |
Direct labor | 0.2 hour at $8.00 per hour | = | $ | 1.60 | |
Manufacturing overhead | 0.2 hour at $3.90 per hour | = | $ | 0.78 | |
During the latest month, the company purchased and used 67,000 pounds of direct materials at a price of $.90 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $12,900 based on 1,720 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $3,800 and fixed manufacturing overhead incurred was $19,000. Based on this information, the total direct materials cost variance for the month was:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started