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company (question 24) The Mercurus Company specializes In the production of rubber ducks. The company uses a variable costing system. Information relating to the production
company (question 24) The Mercurus Company specializes In the production of rubber ducks. The company uses a variable costing system. Information relating to the production of rubber ducks Is given below. Costs Direct material 3 dollar cent per gram Direct labor $14.4 per hour Variable production overhead $3.39 per duck The production of one rubber duck consumes 40 grams of direct materials and 7.2 minutes of direct labour. Budgeted fixed production overhead per month is $16 000. Budgeted production for rubber ducks Is 38 000 ducks per month. Actual production and costs for the month 6 were as follows: Units of rubber ducks produced 33 000 ducks Direct materials purchased and used: 1 188 000 grams $30 888 Direct labor: 3 485 hours $43 156 Variable production overhead Incurred $95 090 Fixed production overhead Incurred $13 600 Using the information above, the material usage variance for the month 6 Is: [Round your answer to the nearest Integer. State your answer In absolute values.]
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