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Bonita Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $6.00 per kilogram) $12.00 Direct labour (2
Bonita Company budgeted the following cost standards for the current year:
Direct materials (2 kg of plastic at $6.00 per kilogram) | $12.00 | ||
Direct labour (2 hours at $12 per hour) | 24.00 | ||
Variable manufacturing overhead | 10.40 | ||
Fixed manufacturing overhead | 7.50 | ||
Total standard cost per unit | $53.90 |
Actual costs for producing 2,740 units were as follows:
Direct materials used | 5,940 | kg | ||
Direct materials purchased (6,580 kg) | $38,822 | |||
Direct labour (6,920 hours) | $69,200 | |||
Variable manufacturing costs | $32,700 | |||
Fixed manufacturing costs | $18,000 |
(a)
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Your answer is incorrect.
Calculate the materials price variance for materials purchased. (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.)
Materials price variance | $enter the materials price variance in dollars rounded to 0 decimal places | select an option UnfavourableFavourableNeither favourable nor unfavourable |
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