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Golien Marine Stores Company manufactures special metalic materials and decorative fitungs for luxury yachts that require fighly sbillod labor. Golden uses standard costs io prepare
Golien Marine Stores Company manufactures special metalic materials and decorative fitungs for luxury yachts that require fighly sbillod labor. Golden uses standard costs io prepare its kexifle budget. For the first quarter of the year, diroct matorlats and direct labor standards for one of their popular products were as follows: Direct materials: 3 pounds per unit; $4 per pound Labor: 5 hours per unit; $22 per hour During the first quarter, Golden produced 4,000 units of this product. Al the end of the quarter, an examination of the direct materials records showed that the company used 11,500 pounds of diroct materials and the direct materias cost variance was $3,870U. Which of the following is a logical explanation for this variance? A. The company used more labor hours than allowed by the standards. B. The company paid a tigher cost per hour for laboe than allowed by the standards. C. The company used a grester quantity of direct matenals than allowed by the standarta. D. The compary paid a higher cost for the direct mutenals than allowed by the standards
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