Question
Landram Corporation makes a product with the following standard costs: Inputs Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 kilos $7.00 per
Landram Corporation makes a product with the following standard costs: Inputs Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 kilos $7.00 per kilo Direct labor 0.6 hours $14.00 per hour Variable overhead 0.6 hours $6.00 per hour In March the company produced 4,600 units using 10,120 kilos of the direct material and 2,100 direct labor-hours. During the month, the company purchased 10,690 kilos of the direct material at a cost of $76,570. The actual direct labor cost was $38,256 and the actual variable overhead cost was $11,957. The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased. The materials quantity variance for March is:
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