Question
A company uses the following standard costs to produce a single unit of output. Direct materials 6 pounds at $0.90 per pound = $ 5.40
A company uses the following standard costs to produce a single unit of output.
Direct materials | 6 pounds at $0.90 per pound = | $ 5.40 |
---|---|---|
Direct labor | 0.5 hour at $12.00 per hour = | $ 6.00 |
Manufacturing overhead | 0.5 hour at $4.80 per hour = | $ 2.40 |
During the latest month, the company purchased and used 58,000 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 $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct materials price variance for the month was:
Multiple Choice
$1,800 favorable
$5,800 unfavorable
$1,800 unfavorable
$1,000 favorable
$6,000 unfavorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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