Question
Holly Industries manufactures artificial holiday wreaths. Its most popular wreath requires 3 yards of artificial pine boughs and 15 sprigs of holly berries. In August,
Holly Industries manufactures artificial holiday wreaths. Its most popular wreath requires 3 yards of artificial pine boughs and 15 sprigs of holly berries. In August, the company purchased 4000 yards of artificial pine bough, and 20000 sprigs of holly berries. Holly paid $2.65 per yard for the artificial pine bough and purchased 4 boxes of 5000 sprigs of holly berries for $7000 per box. The standard price for artificial pine bough is $2.6 per yard, and the standard price per sprig of holly berry is $1.45. During August, holly produced 1250 wreaths and used 3625 yards of artificial pine bough and 19000 sprigs of holly berries. What is Holly's direct materials quantity variance for sprigs of holly berries for August?
$362.5 favorable
$1000 unfavorable
$362.5 unfavorable
$1000 favorable
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