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Blue Inc. is a manufacturer of lead crystal jars. During October, they made 4,000 jars and gathered the following data: Direct materials cost standard $0.50
Blue Inc. is a manufacturer of lead crystal jars. During October, they made 4,000 jars and gathered the following data: Direct materials cost standard $0.50 per pound of glass Direct materials efficiency standard 0.7 pounds per jar Actual amount of pounds used 2,000 pounds Actual cost of pounds used Direct labor cost standard Direct labor efficiency standard Actual amount of direct labor hours Actual cost of direct labor $2.500 $12.00 per DLHr 0.40 DLhr per jar 2,500 DLHr $35,000 Calculate the direct materials price variance. Indicate favorable or unfavorable.
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