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Landram Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 liters $7.00 per liters
Landram Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 liters $7.00 per liters Direct labor 1.1 hours $13.00 per hour Variable overhead 1.1 hours $7.00 per hour The company produced 4,800 units in April using 10,290 liters of direct material and 2,270 direct labor-hours. During the month, the company purchased 10,860 liters of the direct material at $7.35. per liter. The actual direct labor rate was $13.60 per hour and the actual variable overhead rate was $6.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is: $4,830 F O $5,072 U O $5,072 F $4,830 u
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