Question
Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. The standard material is 0.65 ounces per seed packet at a cost of
Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. The standard material is 0.65 ounces per seed packet at a cost of $0.65 per ounce. Johnson Co. budgeted to make 65,000 seed packets but due to high demand, they ended up making 72,000 packets. They paid $42,000 for 60,000 ounces of seed and used all in production during the period.
What is their material cost variance for this period? Enter a favorable variance is a positive number and an unfavorable variance as a negative number.
Enter as a whole number, no commas and no dollar signs.
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