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A firm produces roasting pans. They use standard costing and allocate variable manufacturing overhead on the basis of direct labour hours. The firms planning budget

A firm produces roasting pans. They use standard costing and allocate variable manufacturing overhead on the basis of direct labour hours. The firms planning budget provided the following information at the beginning of the most recent fiscal year:

  • Expect to produce and sell 15,000 roasting pans
  • Expect to spend $180,000 on the purchase of 225,000 pounds of aluminum
  • Expect to pay $540,000 for 30,000 hours of direct labour
  • Expect to pay $210,000 for variable manufacturing overhead

At the end of the fiscal year, the firm determined that it had produced and sold 12,000 roasting pans. They spent $142,800 to purchase and use 204,000 pounds of aluminum and they paid employees $720,000 for 36,000 hours of direct labour. The total bill for variable manufacturing overhead was $234,000.

What was the direct materials quantity variance for the firm?

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