Question
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:
standard quantity standard price standard cost
Direct material 6 lbs $3.50/ lbs 21.00
direct labor 1.3 hours 11.00 hour 14.30
35.30
During March, Bryan purchased 165,000 pounds of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labor. Bryan manufactured 25,000 units of product during March using 151,000 pounds of direct material and 32,000 direct labor hours. Show work below
I The direct labor efficiency variance for March is: A) $5,625 unfavorable. B) $5,500 favorable. C) $5,625 favorable. D) $5,500 unfavorable.
II The direct material quantity variance for March is: A) $3,500 unfavorable. B) $3,550 favorable. C) $3,500 favorable. D) $3,550 unfavorable.
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