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a Fact Pattern: Entity Co. has the following standards costs for a unit of its product: Direct materials (50 liters * $3.00 per liter) $150

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a Fact Pattern: Entity Co. has the following standards costs for a unit of its product: Direct materials (50 liters * $3.00 per liter) $150 Direct labor (4 hours * $15 per hour) 60 Total overhead (4 hours * $9 per hour) 36 Total standard unit cost $246 The budgeted variable overhead rate is $5 per direct labor hour, and the budgeted fixed overhead is $32,000 per month. During September, Entity produced 2,100 units. (Normal capacity was 2,000 units.) The following are actual unit costs: Direct materials (purchased and used) -- 48 liters at $3.10 per liter $148.80 Direct labor -- 3.8 hours at $16 per hour 60.80 Overhead -- $79,800 for 2,100 units 38.00 Total actual unit cost $247.60 The materials quantity variance is O A. $12,600 favorable. B. $10,080 unfavorable $10,080 favorable C. D $7,980 unfavorable

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