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Lucky Number 1 3 , Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government. As a result of the
Lucky Number Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government. As a result of the hack, valuable information regarding direct material purchases and usage were stolen. A manager was able to pull previous records and determined that fewer pounds were used in the production of pairs of sweatpants last period than were purchased. Data also shows that the total direct material variance was $ unfavorable. The direct material price variance was documented to be $ favorable, which resulted from the actual cost per pound of direct material being $ lower than the expected cost of $ per pound. Additional documentation regarding the direct materials quantity variance could not be found. The number of pounds needed to produce each pair of sweatpants is:
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Pounds
Pounds
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