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GreenMat company produces mats. Standard cost information is given below. Direct material quantity = 0,4 meter per mat Direct material cost = $3,10 per meter

GreenMat company produces mats. Standard cost information is given below.

Direct material quantity = 0,4 meter per mat

Direct material cost = $3,10 per meter

Direct labor hour = 0,2 hour per mat

Direct labor cost = $9,20 per hour

Standard variable overhead rate = $1,50 per direct labor hour

Standard fixed overhead rate = $0,80 per direct labor hour

During the year 60,000 mats were produced and sold. Actual cost information is given below.

Direct material quantity = 25,200 meters in total

Direct material cost = $73,080 in total

Direct labor hour = 10,800 hours in total

Direct labor cost = $95,040 in total

Actual variable overhead = $18,200

Actual fixed overhead = $10,000

Normal monthly capacity for the year has been set at 58,000 doormats. Budgeted fixed manufacturing overhead for the period was $9,280.

a. Calculate direct material quantity variance.

b. State whether the variance is favorable or unfavorable.

c. Suggest possible causes for the variance.

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